"This capital, if used well, can bring a new life to the dying houses," he said. "But the main (conservation) body must still be the government so as to prevent the villages from becoming overly commercial."

The protection of ancient villages has been a nationwide problem. Feng Jicai, chairman of the Chinese Folk Literature and Art Society has warned that 300 villages in China are dying every day because of urbanization.

A total of 900,000 villages were destroyed over the past decade, and a large number of them were ancient villages.

Xu believes the reason behind such "vast extinction" is the lack of attention, both from the government and those "cashed-up people".

"Of course, we accept the new policy with open arms," said Yu Feng, vice-chairman of the Collectors' Association of Yiwu, Zhejiang province.

For several decades, Yu, together with his association members, mostly wealthy businessmen from Yiwu, has been searching for old houses across the country. Yu has a personal interest in the houses, but also views them as lucrative investments.

"I believe the private capital in the affluent Yangtze River Delta is abundant enough to cover the restoration and protection of old houses. And there is a keen interest in the field," said Yu.

"But I think it is more ideal to have local businessmen invest in the houses, as they are more familiar with the local culture and traditions and therefore best preserve the original," he said.

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