China Vanke Co. has been thrown a lifeline by state authorities, a rare show of support that signals the developer may be too big to fail even after dozens of property firms defaulted amid China’s punishing housing slump.

By Clare Jim, Ziyi Tang, Kane Wu HONG KONG (Reuters) -After numerous measures to resolve a liquidity crisis in the property market in recent years, Beijing is expected to end up dusting off an old playbook and step in directly to stabilise a state-backed developer seen as a bellwether for the sector.

Embattled builder China Vanke, once the second-largest Chinese developer by sales, reshuffled its management while forecasting a record US$6.2 billion net loss for 2024 as it struggles to get out from under US$4.

Real estate developer says it expects $6.2bn annual loss and announces sudden resignation of chair and chief executive

China Vanke stock surged following a management reshuffle, raising hopes for government support, though liquidity concerns persist amid the property slump.

China's property sector is in turmoil as China Vanke's CEO, Zhu Jiusheng, has been detained. This has sparked fears of a government takeover, sending the company's shares plummeting. The incident is part of wider concerns about debt in China's real estate market,

China Vanke, once a pillar of stability in the country's turbulent property market, announced a projected net loss of $6.2 billion for 2024, marking the largest annual loss in the developer's history.

Troubles at Vanke raise questions about the continued spread of the property crisis and whether the Chinese state will step in.

Shares of China Vanke jumped after key management changes fueled hopes that the government is stepping in to rescue the troubled property developer.

Concerns over China Vanke Co. spiked amid questions on the latest status of its top executive and a local news report that the property developer may be seized by state authorities.Most Read from BloombergThese Homes Withstood the LA Fires.

China continued easing its visa policies in 2024 to boost openness and people-to-people exchange, allowing more foreign travelers and businesspeople to visit the country visa-free. Its latest move was an extension of its visa-free transit policy, which has permitted eligible foreign travelers to stay in the country for 240 hours without a visa.