China Vanke Co. Ltd.'s shares surged 18.2% on Wednesday, as investors cheered a reported plan by Chinese authorities to provide billions of dollars in funding support to help the embattled property developer repay its debt obligations.

According to reports, regulators are exploring a proposal to allocate around 50 billion yuan ($6.84 billion) to Vanke this year to plug its funding gap. This would include 20 billion yuan in special local government bonds to purchase Vanke's unsold properties and vacant land.

The plan also reportedly allows Vanke and its affiliates to tap other financing sources like new bond sales and bank loans for debt repayments. This comes as Vanke, like many other Chinese property firms, has been grappling with a liquidity crunch and sluggish sales amid the nation's ailing real estate sector.