Chinese state-backed developer Sino-Ocean Group is in talks with bad-debt manager China Cinda Asset Management over financial support, according to people familiar with the matter.

The two sides began discussions over further assistance in October, building on their existing collaboration on a number of property projects, said the people, who asked not to be identified because the matter is private.

Options under consideration include state-owned Cinda restructuring some of Sino-Ocean’s units that handle property projects, or injecting capital into some of them in exchange for a stake, the people said.

Sino-Ocean declined to comment, while an official at Cinda didn’t immediately respond to a request for comment.

Sino-Ocean said in September it would suspend payments on all its offshore debt until the securities were restructured or extended to provide a sustainable capital structure. The developer owns land in 63 cities in China and overseas, with 50 projects in Beijing alone, according to its 2022 annual report.

The company has been included on a draft list of 50 developers eligible for a range of financing support, Bloomberg reported last week, citing people familiar.

--With assistance from Emma Dong and Zhang Dingmin.