AsianFin -- Chinese authorities are considering a 50 billion yuan ($6.8 billion) funding plan to help China Vanke Co. bridge its financing gap this year, underscoring government support for the struggling developer, according to sources familiar with the matter.

Under the proposal, regulators would allocate 20 billion yuan from a special local government bond quota to purchase unsold properties and vacant land from Vanke, sources said, requesting anonymity. The funds would help the Shenzhen-based firm meet public and private debt obligations due this year.

Additionally, Vanke and its affiliates would be permitted to tap other financing sources, including new bond sales and bank loans, for debt repayment. However, details of the plan remain subject to change, and it is unclear whether Vanke has initiated any bond issuance efforts.

The proposed financial backing signals Beijing’s commitment to preventing Vanke from meeting the same fate as China Evergrande Group and other private developers that defaulted in recent years. Vanke faces a significant funding shortfall, with $4.9 billion in bonds maturing or requiring redemption this year, as it grapples with sluggish home sales and restricted access to fresh liquidity.