Photo taken on Nov 15, 2011, shows a signage of Gree nland on a building in Shanghai.[Photo/IC]

Property company Greenland Group is moving into the metro construction sector, with the launch of Greenland Metro Investment Development Co on Monday.

The new company signed a strategic agreement with Shanghai Shentong Metro Co Ltd and a group of other Shanghai enterprises to jointly invest and develop metro projects around China.

According to Zhang Yuliang, the chairman and president of Greenland Group, the move is an attempt to diversify business activity based on the company's advantage in property development.

The venture will combine track construction and urban development, with the subway being constructed and then development taking place along the subway line.

During the first half of this year, sales of Greenland Group amounted to 83.5 billion yuan ($13.45 billion), making it the second-largest real estate company in China after the China Vanke Co Ltd .