BUSINESS

State Shareholder Throws Vanke New Lifeline as $2 Billion Debt Payments Loom

Published: Aug. 7, 2025 4:54 a.m. GMT+8

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Shenzhen Metro, which is owned by the city government, became Vanke’s top shareholder in early 2017

China Vanke Co. Ltd. has obtained another emergency loan from its largest shareholder as the embattled developer faces nearly $2 billion in upcoming debt repayments and deepening liquidity stress.

In a Tuesday filing, Vanke said Shenzhen Metro Group Co. Ltd., a state-owned enterprise, has agreed to provide a shareholder loan of 1.681 billion yuan ($234 million). The funds will go toward servicing Vanke’s public bonds and interest on designated borrowings previously approved by Shenzhen Metro.

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China Vanke received a 1.681 billion yuan ($234 million) emergency loan from Shenzhen Metro, its ninth such injection in 2025, totaling 24.4 billion yuan this year.
Vanke faces over 13.8 billion yuan in bond repayments for the rest of 2025, amid a 44% year-on-year drop in sales and shrinking internal cash flow.
Most loans require Vanke to pledge assets; the company is now highly reliant on state support as conventional financing channels remain closed.

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Who’s Who

China Vanke Co. Ltd.: China Vanke Co. Ltd. is an embattled developer facing significant liquidity stress, with nearly $2 billion in upcoming debt repayments. It has received multiple emergency loans from its largest shareholder, state-owned Shenzhen Metro Group Co. Ltd., totaling 24.4 billion yuan in 2025. Despite being a state-backed developer, Vanke's financial troubles reflect the widening scope of China's real estate crisis.

Shenzhen Metro Group Co. Ltd.: Shenzhen Metro Group Co. Ltd. is a state-owned enterprise and the largest shareholder of China Vanke Co. Ltd. Owned by the Shenzhen city government, it has provided significant financial support to Vanke through emergency loans and capital injections, becoming more actively involved in management since 2025.

Onewo Inc.: Onewo Inc. is a property management spinoff of China's embattled developer, China Vanke Co. Ltd. Vanke has pledged 55.8% of Onewo Inc., valued at 12.2 billion yuan, as collateral for emergency loans. This highlights Vanke's severe cash crunch and its increasing reliance on state-backed support amidst China's deepening real estate crisis.

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What Happened When

Early 2017：: Shenzhen Metro became Vanke’s top shareholder.

Late 2023：: Vanke’s financial troubles began as China’s property market crisis deepened.

By the end of 2024：: Vanke’s short-term interest-bearing debt stood at 158.3 billion yuan, up 95.9 billion yuan from 2023, including both bonds and bank loans.

Start of 2025：: Shenzhen Metro took a more active management role in Vanke, along with major cash infusions.

2025：: By this year, Shenzhen Metro has extended 24.4 billion yuan in loans to Vanke.

January-July 2025：: Vanke’s contracted sales fell 44% year-on-year to 82.1 billion yuan.

July 2025：: Three tranches of emergency funding totaling 8.8 billion yuan were provided by Shenzhen Metro to Vanke, helping cover 5.9 billion yuan in bond maturities.