The downpayment is the last defence. But if tax payer's money is not involved, who cares about the downpayment? The bank can give the money away with 0 downpayment if they want to take the risk.
I am surprised the Chinese govt let it go into bankruptcy. Unless the mgmt didn't pay the proper bribes or were too close to a rival Communist party faction.
Don't worry. The founders and gov't offices involved all made tons of money. Only the shareholders who bought their share from the market are still holding the empty bag.