Vanke Seeks Onshore Bond Extensions Amid Liquidity Crunch
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Vanke seeks extensions on domestic bonds. Photo: VCG
China Vanke Co. Ltd. is unlikely to repay three domestic bonds on time by the first quarter of 2026, signaling mounting financial strain on the embattled property developer.
The Shenzhen-based company said on Dec. 5 that it asked bondholders to approve an extension for a 3.7-billion-yuan ($510 million) medium-term note and would forgo exercising its redemption right on another onshore bond, moves that suggest Vanke is conserving cash amid tightening liquidity. The actions come as Vanke faces three domestic debt obligations by the end of the first quarter of 2026.
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- China Vanke is struggling with liquidity and is unlikely to repay three domestic bonds on time by Q1 2026, requesting bond extensions totaling at least 5.7 billion yuan.
- Shenzhen Metro, Vanke’s largest shareholder, provided liquidity support exceeding 31 billion yuan, with most high-quality assets already pledged as collateral.
- Despite state-backed rescue efforts, regulators warn against prioritizing asset preservation over resolving systemic risks, urging faster restructurings for insolvent developers.
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Who’s Who
- China Vanke Co. Ltd.
- China Vanke Co. Ltd. is a Shenzhen-based property developer facing significant financial strain. It is unlikely to repay three domestic bonds on time by Q1 2026 and is seeking maturity extensions for some of its debt. Its largest shareholder, state-owned Shenzhen Metro Group Co. Ltd., is providing liquidity support, yet Vanke has pledged high-quality assets. The company faces over 360 billion yuan in maturing obligations in 2025.
- Shenzhen Metro Group Co. Ltd.
- Shenzhen Metro Group Co. Ltd. is China Vanke Co. Ltd.'s largest shareholder. It has provided significant liquidity support to Vanke, including 31.46 billion yuan across 13 transactions and a commitment of up to 22 billion yuan in shareholder loans through 2026. This state-owned entity effectively took over Vanke's day-to-day operations earlier this year.
- Onewo Inc.
- Onewo Inc. is the listed property-management arm of China Vanke Co. Ltd. Vanke has pledged its entire 57% equity stake in Onewo, valued at over 12 billion yuan, as collateral. This stake was considered one of Vanke's few remaining liquid and high-quality assets.
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What Happened When
- 2025：
- Vanke faces more than 360 billion yuan in maturing or puttable domestic and offshore bonds.
- Earlier in 2025：
- Shenzhen Metro Group effectively took over day-to-day operations of Vanke.
- Since Feb. 10, 2025：
- Shenzhen Metro provided 31.46 billion yuan in liquidity support across 13 transactions; Vanke drew about 30.8 billion yuan, using it to repay about 30.5 billion yuan in public debt on schedule.
- Since November 2025：
- Broader debt restructuring discussions began under the coordination of local Shenzhen authorities.
- As of Nov. 13, 2025：
- Vanke had drawn about 21.38 billion yuan in unsecured loans from Shenzhen Metro.
- Nov. 26, 2025：
- Vanke disclosed plans to extend a 2-billion-yuan medium-term note (originally due on Dec. 15, 2025), marking its first onshore public debt extension.
- Dec. 5, 2025：
- Vanke announced that it asked bondholders to approve an extension for a 3.7-billion-yuan medium-term note and stated it would forgo exercising its redemption right on another onshore bond.
- Dec. 6, 2025：
- China Real Estate Business published a commentary urging local authorities to speed up restructurings or judicial processes for deeply insolvent firms.
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