China’s state-backed property developer China Vanke announced on Sunday that its largest shareholder, Shenzhen Metro Group, has agreed to provide loans of up to 22 billion yuan ($3.09 billion) to help ease the company’s ongoing liquidity pressures.

The agreement, disclosed in a stock exchange filing, marks a significant step in stabilizing one of China’s most prominent real estate firms as the sector continues to grapple with financial stress and declining homebuyer confidence.

Shenzhen Metro Group, a state-owned enterprise, currently owns about one-third of China Vanke. Its support signals a renewed effort by local authorities to prevent major developers from defaulting amid China’s broader property market downturn.

China Vanke, long regarded as one of the more financially sound players in the country’s real estate market, has recently faced tight funding conditions and weaker sales, mirroring challenges faced by many developers across China.

The loan commitment from Shenzhen Metro is expected to bolster market confidence and provide Vanke with critical short-term liquidity to sustain project completions and maintain operations across its major urban developments.