Chinese real estate giant Country Garden has received approval from creditors to extend its primary bond payments to avoid default.
On Saturday, it was reported that bondholders had agreed to a plan for the company to extend bond payments of 3.9 billion yuan ($540 million).
It is the first debt extension Country Garden has acquired since its liquidity crisis was announced last month.
The move is not only seen to help the company avoid default but also offers a temporary reprieve for the rest of the real estate industry.
As a result, Country Garden shares jumped 19% to their highest level since August 10 in Asian trading. Hong Kong's Hang Seng mainland real estate index rose more than 9%.
In the meantime, the Chinese government added more stimulus by approving the establishment of a special bureau to promote the development and growth of the private economy.
The private sector is responsible for 80% of new jobs in the city, but has struggled to attract investment amid a weak economic recovery during the first half of the year.
