The involvement of two Chinese state-owned financial firms in Zhongrong International Trust Co's operations and management may diffuse risk at the troubled shadow bank but does little to ease concerns about missed payments, analysts and investors said, Reuters reported. The shadow bank, which traditionally had sizable real estate exposure, missed payments on dozens of so-called trust products since late July, roiling markets and raising fears that China's financial system may be at risk from the property sector crisis.

Distressed Chinese developer Country Garden Holdings Co. faces two more tests Monday: an initial deadline to pay dollar bond interest and the end of creditor voting on its request to extend payment on a yuan note, Bloomberg News reported. Holders of that local bond due Oct. 21 have until 10 p.m. Beijing time Monday to vote on the proposal to stretch payment by three years. If they reject it, Country Garden would need to pay the 492 million yuan ($67.6 million) of outstanding principal next month, its largest near-term maturity just as it’s struggled to make smaller payments.

China’s central bank announced a policy change on Thursday that will allow the country’s banks to lend more money, but a nationwide economic slowdown has left many companies and households wary of borrowing, the New York Times reported. The move is the latest in a series of economic stimulus measures by the Chinese government as growth has failed to rebound strongly this year as many expected after nearly three years of stringent pandemic-control regulations.

China’s economy appears to have survived its near miss with a damaging bout of consumer-price deflation—for now, the Wall Street Journal reported. After a grim June and July, China’s main August economic data, released Friday, contained clear hints of improvement. The news from the critical housing sector, which is mired in a protracted slump, was less encouraging: Price falls accelerated in lower-tier cities. But growth in retail sales accelerated to 4.6% from a year earlier, from just 2.5% in July. Unemployment ticked down marginally.

China's central bank said on Thursday it would cut the amount of cash that banks must hold as reserves for the second time this year to boost liquidity and support the country's economic recovery, Reuters reported. The People's Bank of China (PBOC) said it would cut the reserve requirement ratio (RRR) for all banks, except those that have implemented a 5% reserve ratio, by 25 basis points from Sept. 15. The reduction follows a 25-bps cut for all banks in March and comes as the world's second-biggest economy is struggling to sustain a post-pandemic recovery.

China is carrying out a massive anticorruption purge across its healthcare sector, in an effort to bring down medical costs and revive the country’s flagging economy, the Wall Street Journal reported. Communist Party enforcers have steamrolled through hospitals and medical institutions across China, detaining more than 190 hospital party chiefs, directors and deputy directors—incumbent and former—so far this year, according to a Wall Street Journal review of government disclosures.

China's largest private property developer Country Garden won approval from its creditors to extend repayments on six onshore bonds by three years, two sources familiar with the matter said on Tuesday, sending shares up as much as 10%, Reuters reported. The bondholder reprieve came as investors are closely monitoring whether China's latest government stimulus measures including lowering existing mortgage rates and offering preferential loans for first-home purchases in big cities might be enough to restore consumer confidence and sow the seeds for an eventual property market recovery.

China's economy is resilient and has not collapsed, the Chinese foreign ministry said on Tuesday, rejecting claims from the West that its economy is faltering and could cause wider problems, Reuters reported. Officials from countries including Australia and the United States have publicly raised concerns about the world's second-largest economy. U.S. President Joe Biden called China's economic situation a "crisis" while Australian Treasurer Jim Chalmers said a slowing Chinese economy could in turn weigh on Australia's.

Embattled developer Country Garden faces a new round of voting by creditors to extend several debt maturities on Monday, having avoided default at the last minute twice already this month to bring some respite to the crisis-hit Chinese property sector, Reuters reported. The voting, due to conclude by 10 p.m. Hong Kong time (1400 GMT), will have onshore creditors decide on approving a proposal by Country Garden to extend repayments of eight onshore bonds by three years. The latest voting comes after the country's largest private developer on Sept.

China’s credit demand improved, deflationary pressures eased and the yuan rallied, adding to a recent trickle of signs that the economy and financial markets may be stabilizing after a sharp downturn, Bloomberg News reported. The strong credit data published Monday showed recent steps to bolster the real estate market may be starting to lift household demand for mortgages, while corporate loans also picked up. The yuan gained after the central bank escalated its defense of the currency.