China's largest developer, Greenland Group, would invest 31.3 billion yuan ($5 billion) in a subway project in Nanjing as it pushes forward its strategy to engage in massive urban development through financing subway transportation.

According to a memorandum of understanding the company signed with the Nanjing government on Wednesday, the company would participate in the development of the city's Line 5 subway. The engagement would give it access to commercial projects related to the subway, such as construction and land development along the line.

The company also would invest over 30 billion yuan in a city light rail project in southwest Chongqing. Greenland previously spent 11.7 billion yuan in its first subway development project in eastern Xuzhou.

The strategy could help the developer to acquire land at a cheaper cost amid rising land prices in major Chinese cities, analysts said.