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Chinese banks are reportedly scrambling to bail out one of the country’s biggest property developers after its credit rating was downgraded to “junk” status by Moody’s on Monday.

Beijing has been struggling to restore confidence in the country’s ailing real estate industry and appears to be working flat out to prevent China Vanke going the way of Evergrande and Country Garden, which both defaulted on their debts and are at risk of being liquidated.

Chinese state media reported Tuesday that 12 major banks, including the six largest state-owned lenders, were in talks to provide a syndicated loan for Vanke worth as much as 80 billion yuan ($11.2 billion) to enable the company to meet upcoming repayment deadlines.

The provision of the loan is still uncertain, state media outlet Cailianshe reported, citing an unnamed source close to the potential deal. Another state media outlet, the Economic Observer, reported that several insurance companies have sent teams to Vanke’s headquarters for a new round of debt negotiations in a bid to avert a default. CNN has reached out to Vanke for comment.

Founded 40 years ago, Vanke was the country’s second largest developer by sales last year but it has been hammered by the collapse in demand for apartments and the slump in home prices.

Vanke’s stock soared in Hong Kong and Shenzhen following the reports of potential new financing. On Tuesday, its Hong Kong-listed shares ended up 10.3%, while the Shenzhen-traded stock closed 5.7% higher. But they are still in negative territory so far this year.

On Monday, Moody’s cut Vanke’s rating to Ba1, which is often referred to as a junk rating. That means the company needs to offer a higher yield on its bonds to compensate for the greater risk of payment default that bond investors are taking on.

“The rating actions reflect Moody’s expectation that China Vanke’s credit metrics, financial flexibility and liquidity buffer will weaken over the next 12 to 18 months because of its declining contracted sales and the rising uncertainties over its access to funding amid the prolonged property market downturn in China,” Kaven Tsang, a senior vice president at Moody’s said in a press release.

Other international ratings agencies S&P and Fitch have kept Vanke’s ratings at investment grade.

Founded in 1984 in Shenzhen, Vanke is a flagship company in China’s property sector. Its founder Wang Shi is considered the “Godfather” of the industry and was likened to Donald Trump by Time magazine. It was the first listed property company in mainland China, boasting a high-profile IPO in 1991 on the still-nascent Shenzhen Stock Exchange.