BUSINESS

Vanke Seeks to Delay Repayment on 2 Billion Yuan Note as Debt Pressures Mount

Published: Nov. 27, 2025 4:53 a.m. GMT+8

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Signage for China Vanke Co. atop the Hongqiao Vanke Center in Shanghai on Jan. 17, 2025.

China Vanke Co. has called a Dec. 10 bondholder meeting to vote on extending repayment of a 2 billion yuan ($282 million) note, underscoring mounting debt pressure grappling the embattled property giant despite months of state-backed support.

The note, “22 Vanke MTN004,” was issued in December 2022 with a three-year maturity and 3% coupon. The company’s Wednesday filing marks its first public attempt to seek an extension, amid rising convers over its liquidity.

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China Vanke faces severe liquidity stress, calling a Dec. 10 bondholder vote to extend repayment on a 2 billion yuan note, with over 36 billion yuan in debt due in 2025.
Shenzhen Metro, Vanke’s main backer, has injected 31.5 billion yuan but future support is capped at 22 billion yuan and must now be collateralized, leaving Vanke facing a shortfall.
Falling bond and share prices, shrinking sales, and uncertainty around external financing raise default risks, with restructuring rumors intensifying.

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Who’s Who

China Vanke Co.: China Vanke Co. is a property giant facing significant debt pressure, despite state-backed support. The company is seeking to extend repayment of a 2 billion yuan note and faces over 36 billion yuan in public debt due in 2025. Its largest shareholder, state-owned Shenzhen Metro Group, has provided liquidity, but new agreements limit future unconditional support. Vanke's stock and bonds have plunged amid market anxiety and concerns over its liquidity.

Shenzhen Metro Group: Shenzhen Metro Group is Vanke's largest shareholder and has provided significant financial support. They injected 31.5 billion yuan in liquidity to help Vanke meet debt repayments. However, a new agreement limits future shareholder loans to 22 billion yuan, requiring collateral. Shenzhen Metro remains committed to supporting Vanke through market-oriented means.

China International Capital Corp.: China International Capital Corp. (CICC) is an investment bank that has been rumored to be advising China Vanke Co. on debt restructuring. This speculation suggests that a formal debt workout process for Vanke might be approaching, given the property giant's mounting debt pressure.

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