Now that China is making a clear effort to rescue its housing market, Country Garden Holdings Co., once the nation’s biggest real estate developer by sales, might just manage to crawl out of its debt crisis. The question is how.

It won’t be easy. Country Garden doesn’t benefit much from the government’s latest measures, at least not immediately. For instance, China is lowering the minimum down payment for first and second homes to 20% and 30%, respectively. But only 22 major cities, including Beijing where the current requirements are 35% and 60%, have room to reduce them. Country Garden’s land bank exposure to these areas is only 13%, HSBC Holdings Plc estimates. Its stronghold is smaller cities, not metropolises like Shanghai and Shenzhen.

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How Can Country Garden Crawl Out of Its Debt Crisis?