Earlier this summer, Evergrande also sold stakes in its internet business.

Now, with the market bracing for the possibility of a disorderly collapse of Evergrande, officials are likely to draw on their experience managing similar blowups, most recently organizing a bailout of China Huarong Asset Management Co., the largest Chinese manager of nonperforming loans and other bad debt. Earlier this year, a Chinese court ruled to begin bankruptcy proceedings to embattled Chinese conglomerate HNA Group Co.

In a Tuesday memo to employees for Chinas Mid-Autumn Festival, Evergrandes founder and chairman, Hui Ka Yan, acknowledged the companys unprecedented difficulties, but vowed to push through the pain