Vanke Secures Debt Repayment Loan From Largest Shareholder

A rundown of the news making headlines in and around China:

Vanke lifeline: Property developer China Vanke Co. Ltd. has secured a loan of up to 2.8 billion yuan ($384.2 million) for debt repayment from its largest shareholder, Shenzhen Metro Group Co. Ltd. The state-owned shareholder has been increasing its control of the company in recent weeks, replacing Vanke’s chairman with its own Chairman Xin Jie last month, while appointing new executives to assume key positions in the troubled developer’s core departments and regional companies. The restructuring comes as Vanke is facing severe liquidity challenges. The company has 16 domestic public bonds totaling 32.6 billion yuan due or exercisable in 2025, with 9.9 billion yuan in the first quarter alone. Vanke also has two overseas bonds due this year, with a combined outstanding principal of about 3.6 billion yuan. Vanke has pledged shares in its property management arm Onewo Inc. as collateral for the loan from Shenzhen Metro.