China plans to merge three state-owned bad debt asset managers with its sovereign wealth fund, China Investment Corp, to stabilize the capital markets and restore investor confidence. This follows a stock market drop due to financial risks in the real estate sector and a recent suspension of restricted share lending. The merger is part of Beijing's reform agenda and comes after the central bank's move to ease the cash crunch for developers. Despite efforts to reassure investors, concerns about China's economic health and potential banking system collapse remain.