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Shares of debt-ridden Chinese property giant Evergrande rallied on Monday after a state-owned company official was appointed to its board, paving the way for a government bailout.

Evergrande, which has been on the brink for months as it struggles to repay more than $300 billion in debt, ended up climbing nearly 4% on Monday.

The rally came after a stock market filing on Sunday showed the company had named China Cinda Asset Management’s Liang Senlin – one of the country’s four largest public asset managers – to its board. .

The provincial government of Guangdong – where the company is headquartered – is currently overseeing Evergrande’s debt restructuring process and the appointment of an official from a major state asset manager appears to have pleased investors.

State-owned companies are expected to take over assets from the struggling real estate giant and the company set up a risk management committee last month, with senior officials from state entities to facilitate the process.

On Sunday, Evergrande said it had also named the head of its electric vehicle business, Shawn Siu, to the company’s board of directors as it bets on the growing sector to help bail out its struggling real estate business.

The company has repeatedly said it will complete its building projects and deliver them to buyers in a desperate bid to save its debts, despite missing a payment of more than $1.2 billion in December.

But the company warned in a separate statement later Monday that its situation would “become increasingly complex”, adding that it was in communication with foreign creditors about its efforts to develop a debt restructuring plan.

Evergrande said it asked creditors to “give us more time” and avoid “initiating sweeping legal action that would impact the current hard-earned stability.”

Chinese real estate companies have struggled to keep up with Beijing’s push to reduce excessive debt in the real estate sector and tackle rampant consumer speculation.

Another struggling developer, Yuzhou Group, said it would default on two dollar bonds worth more than $100 million due this week, in a Hong Kong stock exchange filing on Monday.

Yuzhou has $5.7 billion in dollar-denominated debt, according to data compiled by Bloomberg.

In recent days, stressed real estate companies Agile Group and Shimao Group also announced the sale of stakes in companies to public companies.

Indebted property developer China Evergrande on Monday asked foreign creditors for more time to formulate a debt restructuring plan that benefits all stakeholders and urged them not to take “drastic” legal action.

The company is at the forefront of the crisis in China’s real estate sector with more than $300 billion in liabilities.

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