China has accumulated a large cushion against the possibility of a housing crash. The government debt level, although rising in recent years, is still fairly low at approximately 40% of GDP compared with 92% in the United States, 80% in Germany and 220% in Japan. Furthermore, China has $3 trillion in foreign exchange reserves that it can access when needed, and the People’s Bank of China holds nearly $700 billion in required reserves. Chinese banks depend on deposits as a major source of funding. Consequently, they are less vulnerable to a liquidity crunch than U.S. banks, which are more reliant on short-term borrowed funds.That is from this report. The authors assessment is "cautiously positive."
A graph from the report: