China is urgently trying to save another major property firm from collapse

Major Chinese banks are organizing a rescue for a top developer, Vanke, after Moody's downgraded its credit to "junk" status.

Amid fears of replicating the crises of Evergrande and Country Garden, authorities are working hard to stabilize the faltering real estate market.

Reports suggest that talks for an 80 billion yuan loan are underway to help Vanke avoid defaulting on its debts. However, the deal's finalization remains uncertain.

Despite challenges in the real estate sector, Vanke's shares rose on the Hong Kong and Shenzhen stock exchanges after the news of possible financial aid.

Vanke, a real estate giant founded in 1984 and regarded as a market leader, is struggling with decreased demand and stringent funding conditions. Its sales have seen a significant drop, reflecting the industry's broader downturn.

Efforts by Beijing to remedy its property crisis have continued since Evergrande's default in 2021. However, the market has not yet recovered, and sales and investment in the sector have seen consecutive yearly declines.

The Chinese government has introduced measures to support developers' financing but has emphasized that only those with viable operations will receive help, excluding companies with severe solvency issues.