Cash-Strapped Vanke Dumps Repurchased Shares at 62% Discount to Raise Funds
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The China Vanke Co. sign on top of the Hongqiao Vanke Center in Shanghai on Jan. 17, 2025. Photo: Bloomberg
Chinese property giant Vanke is offloading stock it previously bought back at peak prices, as mounting debt and a worsening liquidity crunch force the company into survival mode.
Vanke said on Tuesday night that it sold 22 million A-shares through block trading, raising about 146 million yuan ($20 million) before fees. The shares represent roughly 0.18% of the company’s total outstanding stock.
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- Vanke sold 22 million A-shares for 146 million yuan, part of a 2022 buyback, at a 60% loss from the original purchase price.
- The company faces significant debt, including 16 domestic bond maturities totaling 32.64 billion yuan in 2025.
- Vanke held only 868 million yuan in cash as of March 2025, and plans to sell remaining repurchased shares.
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Who’s Who
- Vanke
- Vanke is a Chinese property giant facing a severe liquidity crunch and mounting debt. The company is offloading stock it previously bought back at higher prices to raise funds. This move is part of its broader efforts to restructure and secure its financial stability amid a challenging real estate market in China. Its stock value has significantly declined since late 2023.
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What Happened When
- 2021：
- Vanke’s net profit plunged 45.8%, triggering a public apology from then-Chairman Yu Liang.
- Late 2021：
- China’s real estate sector entered a liquidity crisis; Vanke's troubles began in earnest.
- May-June 2022：
- Vanke bought back 72.96 million A-shares at an average price of about 17.70 yuan per share as part of a buyback program.
- Late 2023：
- Vanke’s stock, once trading between 15 and 19 yuan, has been in steady decline since this time.
- April 2024：
- Vanke launched a broad restructuring plan to slim down and focus on core business.
- Early 2025：
- Shenzhen government intervened in Vanke, and Shenzhen Metro Group provided five shareholder loans totaling nearly 15 billion yuan.
- As of March 2025：
- Vanke held just 868 million yuan in cash, down 43 million yuan from the end of 2024.
- June 9, 2025：
- Vanke sold 22 million A-shares through block trading, raising about 146 million yuan before fees.
- June 10, 2025：
- Vanke announced the share sale and the average price was more than 60% below its original buyback cost.
- June 11, 2025：
- Vanke’s stock closed down 0.45% at 6.57 yuan.
- By July 2, 2025：
- Deadline under Chinese corporate law for Vanke to sell or cancel the repurchased shares.
- By August 2025：
- Vanke must repay three domestic bonds with a combined principal of 7.1 billion yuan.
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