Abstract: Recognizing the financial nature of Chinese real estate enterprises, we argue that resolving failing and likely-to-fail real estate firms should learn from how troubled financial institutions are handled. Drawing from the lessons of the 2007-2009 U.S. subprime mortgage crisis and subsequent global financial turmoil, along with the establishment of structured resolution regimes for systematically important financial entities, we propose a roadmap and operational framework for managing troubled financial institutions (real estate companies). We believe that only by adopting the correct resolution framework can policymakers minimize risks and resolution costs, as well as the spillover effects on the macroeconomy.
