This browser is not actively supported anymore. For the best passle experience, we strongly recommend you upgrade your browser.
| 1 minute read

The Accountability Imperative: Safeguarding China’s Construction Sector Support

As the Chinese government looks to extend support to distressed construction companies, questions arise regarding the structure and oversight of this vital lifeline.

While the injection of funds holds promise for completing stalled projects and bolstering property sales, transparency and accountability are paramount to ensure the funds are utilised effectively.

As the China property sector navigates this critical juncture, the effective deployment of financial support will hinge not only on the availability of funds but also on the governance and oversight mechanisms put in place to ensure their responsible utilisation.

Stakeholders will be closely monitoring these developments, and the opportunity for independent oversight could emerge as a crucial factor in ensuring that the support leads to sustainable progress and instills confidence in the sector's recovery.

Independent oversight can be made possible by engaging a monitoring accountant. Their role is to work together with management ensuring financial integrity, compliance and risk management are maintained so that the desired outcomes are achieved for the benefit of all stakeholders. 

The views expressed herein are those of the author(s) and not necessarily the views of FTI Consulting, Inc., its management, its subsidiaries, its affiliates, or its other professionals

FTI Consulting, Inc., including its subsidiaries and affiliates, is a consulting firm and is not a certified public accounting firm or a law firm.

Chinese leaders are making their most forceful push yet to end the nation’s property crisis, ramping up pressure on banks to plug an estimated $446 billion shortfall in funding needed to stabilize the industry and deliver millions of unfinished apartments.


restructuring, real estate sector, china, governance, stakeholders, risk management, compliance