BUSINESS

Vanke Proposes Debt Extension to Avoid January Default

Published: Jan. 3, 2026 12:21 a.m. GMT+8

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Once regarded as a model developer, Vanke is now struggling to weather China’s prolonged property downturn

China Vanke Co. Ltd. is once again seeking to delay the repayment of a maturing domestic bond, marking its third such attempt as the embattled property developer faces intensifying liquidity pressure and dwindling state support.

On the evening of Dec. 31, 2025, Vanke announced it would convene a meeting of bondholders for its “21 Vanke 02” corporate note to vote on a proposal to push back repayment. The meeting is scheduled for Jan. 16, with voting to conclude on Jan. 19. Trading of the bond will be suspended starting Jan. 5, the company said.

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China Vanke is seeking a one-year extension to repay a 1.1 billion yuan bond due Jan. 22, 2026, after two failed extension attempts on other bonds.
The company faces severe liquidity pressure following the halt of financial aid from Shenzhen Metro, which provided 31.5 billion yuan since February 2025.
Vanke has 16 domestic bonds worth 21.8 billion yuan, two dollar bonds totaling $1.3 billion, and total debt of 364.3 billion yuan as of June 2025.

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Who’s Who

China Vanke Co. Ltd.: China Vanke Co. Ltd. is a property developer facing intense liquidity pressures and dwindling state support. The company is attempting its third domestic bond repayment delay for its "21 Vanke 02" corporate note. Previously considered a model developer, Vanke's situation worsened after its largest shareholder, Shenzhen Metro Group, capped further financial aid.

Shenzhen Metro Group: Shenzhen Metro Group, a state-owned entity, is China Vanke Co. Ltd.'s largest shareholder. It previously provided significant financial aid to Vanke, injecting 31.5 billion yuan since February 2025. However, in November 2025, Shenzhen Metro Group capped further financial assistance, stating that continued guarantees exceeded its risk tolerance and that "blood transfusions" are not sustainable.

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What Happened When

By Feb. 2025：: Shenzhen Metro Group had provided 31.5 billion yuan in liquidity support to Vanke.

In 2025：: Vanke repaid 30.5 billion yuan in public debt, supported by funding from Shenzhen Metro.

End of June 2025：: Vanke’s total interest-bearing debt stood at 364.3 billion yuan.

Early Nov. 2025：: Shenzhen Metro Group halted new shareholder loans to Vanke, ending further financial aid.

Nov. 2025：: Vanke’s position deteriorated after its largest shareholder capped further financial aid.

Dec. 2025：: Vanke made two failed attempts to extend maturities on 2 billion yuan '22 Vanke MTN004' and 3.7 billion yuan '22 Vanke MTN005' domestic bonds. Creditors rejected the one-year extension requests but approved a 30-trading-day grace period.

Evening of Dec. 31, 2025：: Vanke announced it would convene a bondholders’ meeting for the '21 Vanke 02' note to vote on a repayment extension proposal.

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