FINANCE

Analysis: Vanke’s Extension Plan Sparks Fresh Jitters in China’s Bond Market

Published: Dec. 2, 2025 5:05 p.m. GMT+8

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China Vanke Co. Ltd. (000002.SZ), long viewed as one of the country’s most reliable and conservatively run developers, has jolted the onshore bond market by proposing to extend repayment of a domestic bond coming due in mid-December.

The move has intensified concerns that even the sector’s strongest names are no longer insulated from the prolonged liquidity squeeze battering China’s real estate industry.

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China Vanke proposed extending repayment of a 2 billion yuan bond due in December 2024, raising concerns over its liquidity and sparking a market selloff.
Vanke’s record debt (362.9 billion yuan as of September 2024), falling cash, and weakened sales have heightened investor worries and strained its top shareholder, Shenzhen Metro.
The move prompted increased credit caution across China’s real estate sector, though systemic contagion risk appears limited for now.

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Who’s Who

China Vanke Co. Ltd.: China Vanke Co. Ltd. (000002.SZ) is facing liquidity issues, proposing to extend a December domestic bond repayment. This move, surprising for a previously reliable developer, highlights the property sector's widespread financial strain. Its shares and bonds have fallen, and its balance sheet is stretched, raising concerns about its largest shareholder, Shenzhen Metro Group.

Shenzhen Metro Group Co. Ltd.: Shenzhen Metro Group Co. Ltd. is the largest shareholder of China Vanke Co. Ltd. This state-owned metro operator has provided substantial liquidity to Vanke over the past year. Investors are now reassessing the risks associated with Shenzhen Metro's exposure to Vanke due to the latter's financial strain.

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