China supports troubled state-owned Vanke Group, defying bankruptcy for troubled real estate developers, bucking trend, while others face liquidation.
Chinese Government Supports Vanke Group Amid Property Crisis
China has asked 12 banks to provide financing to the beleaguered state-owned real estate firm, Vanke Group, just days after the housing and urban-rural development ministry vowed to let insolvent property developers go bankrupt. The move contrasts with the government’s recent trend of allowing indebted developers to fail, exacerbating the sector’s crisis.
Rescue Efforts for Vanke Spark Online Debate
The Chinese government’s support for Vanke, part-owned by the Shenzhen government, signals a departure from its policy of advancing state enterprises over the private sector, reflecting President Xi Jinping’s priorities. While rescue efforts are underway, Moody’s downgrade of Vanke’s credit rating to ‘junk’ has raised concerns about the company’s stability and the overall impact on China’s economy.
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