China Examines Measures to Support Real Estate Companies Too Big to Fail

China is examining measures to support real estate companies that are too big to fail, according to sources familiar with the matter. The move comes as part of the government's efforts to stabilize the real estate market amid a slowing economy and rising defaults on mortgages. The measures are expected to include providing liquidity support for large real estate companies, such as those with assets exceeding 10 billion yuan ($1.5 billion). This would be done by allowing them access to funds from state-owned banks and other financial institutions. Additionally, the government is looking into ways of reducing taxes and fees on these companies, as well as offering subsidies for rental payments. The Chinese government has been increasingly concerned about the health of its real estate sector in recent months. A series of defaults on mortgage payments have raised fears that a housing bubble could burst, which could lead to an economic crisis similar to what happened in 2008. In response, authorities have taken steps such as cutting interest rates and relaxing loan requirements for first-time homebuyers in order to stimulate demand. However, some analysts believe that these measures may not be enough if larger real estate companies start facing difficulties due to their size and complexity. These firms often have extensive debt obligations that can make them vulnerable during times of economic downturns or when property prices fall sharply. By providing targeted assistance for these firms, authorities hope they can avoid a more serious crisis down the line. It remains unclear how much money will be allocated for this purpose or when exactly it will be implemented but sources say it is likely that details will emerge soon given the urgency of the situation. It is also possible that other forms of support may be announced in addition to those mentioned above depending on how severe the situation becomes over time.