China urges state firms to avoid debt defaults

China’s government has told its state-owned property companies to make sure they don’t fail to pay back public debts. This new rule is part of a bigger plan to tackle the country’s long-running property market troubles. Authorities want these firms to keep their finances steady to prevent more problems in the struggling real estate sector. The property crisis has been a headache for years, with falling home sales and prices hurting developers.

Some companies have already missed debt payments, shaking investor trust. By setting this requirement, the government hopes to calm markets and show that state-backed firms can handle their debts responsibly. It’s a move to stop the crisis from spreading further. Officials are stepping up efforts to support the economy, which faces challenges like slowing growth and rising debt. State-owned developers are seen as key players in fixing the property mess, so keeping them stable is a top priority.

The government is also looking at other ways to help these firms manage nearly $2.8 trillion in bonds due soon. Experts say this rule could bring some relief,f but won’t solve everything. The property sector still faces big issues, like too much borrowing and weak demand for homes. Investors are watching closely to see if China can keep its real estate market from falling apart. For now, the focus is on making sure state firms stay strong and pay their debts on time.