China to create fund to rescue financial companies

Move meant to avert financial crisis stemming from real estate market slump

20240623N country garden KYODO

The headquarters of property developer Country Garden Holdings in Foshan, China. Country Garden is one of several Chinese developers that are struggling. © Kyodo

KENTARO SHIOZAKI, Nikkei staff writer

BEIJING -- The Chinese government plans to set up a rescue fund for embattled financial institutions, aiming to prevent a financial crisis triggered by the real estate market slump.

Unlike similar funds that were created to protect customers, the purpose of the new fund is to prevent financial institutions from collapsing suddenly, given that such bankruptcies could cause turmoil in the financial market.

Sponsored Content

About Sponsored ContentThis content was commissioned by Nikkei's Global Business Bureau.