Property Giant Vanke Prepares for ‘Life or Death’ Battle Amid Flagging Market

Real estate giant China Vanke Co. Ltd. (000002.SZ) is planning to shrink its balance sheet and take cost-saving measures as the nation’s languishing property market shows little sign of recovery.

“We are facing a battle this year for life or death, with no gray area,” Vanke Chairman Yu Liang told the company’s annual managers’ conference in January, according to a transcript of the speech verified by Caixin. “The real estate industry’s overall balance sheet will shrink, which means its development will rely less on borrowing.”