The decision comes as troubles in China’s property sector add to the world’s second largest economy’s woes.

China’s economy has slowed, exports have decreased, and youth unemployment has reached a new high.

Official numbers released last week revealed that the country had fallen into deflation for the first time in more than two years.

On Thursday, China Evergrande Group filed for Chapter 15 bankruptcy protection in a New York court.

Chapter 15 bankruptcy preserves a foreign company’s assets in the United States while it tries to restructure its debts.

Evergrande has been attempting to restructure its debt repayment agreements with creditors since its default in 2021.

It was the world’s most indebted property developer, with an estimated $300 billion in debt.

Concerns that the company was on the verge of bankruptcy sent shockwaves through global financial markets at the time.

Trading in the company’s Hong Kong-listed shares has been halted since March 2022.

Evergrande disclosed last month that it had lost 581.9 billion yuan ($80 billion; £62.7 billion) in the previous two years.

Country Garden, another Chinese property giant, warned last week that it could lose up to $7.6 billion in the first six months of the year.

Earlier this month, Beijing declared that China’s economy had entered deflation, citing a drop in consumer prices in July for the first time in more than two years.

Because of its slow growth, China is not seeing the increasing prices that have alarmed many other countries and spurred central bankers around the world to raise borrowing costs dramatically.

Imports and exports fell substantially this month as lower global demand jeopardized the world’s second-largest economy’s recovery chances.

Official numbers reveal that exports plummeted 14.5% year on year in July, while imports declined 12.4%.

China’s central bank unexpectedly slashed key interest rates for the second time in three months earlier this week in an effort to bolster the economy.