BUSINESS

China Vanke Gets Another Lifeline From Largest Shareholder

Published: Jan. 28, 2026 6:46 p.m. GMT+8

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Shenzhen Metro has granted Vanke the option to repay early or negotiate further extensions if it faces continued liquidity difficulties. Photo: VCG

China Vanke Co. Ltd. (000002.SZ) said its largest shareholder is providing a 2.36 billion yuan ($339 million) loan to help it meet near-term debt repayment obligations, as it struggles to manage a liquidity crunch amid China’s prolonged property slump.

Shenzhen Metro Group Co. Ltd. is providing the three-year loan at an interest rate of 2.34%, according to a stock exchange filing on Tuesday. The state-owned railway operator has granted Vanke the option to repay early or negotiate further extensions if it faces continued liquidity difficulties.

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China Vanke received a 2.36 billion yuan ($339 million) loan from Shenzhen Metro Group to meet near-term debt obligations amidst a liquidity crunch.
Vanke secured bondholder approval to extend maturities on two medium-term notes, paying 40% in cash by late January and rolling over the rest for one year.
Despite immediate relief, Vanke faces over 15 billion yuan in onshore bonds maturing after Q1 2026 and $1.3 billion in offshore debt.

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Who’s Who

China Vanke Co. Ltd.: China Vanke Co. Ltd. (000002.SZ) is facing a liquidity crunch amidst China's property slump. Its largest shareholder, Shenzhen Metro Group Co. Ltd., is providing a 2.36 billion yuan three-year loan to help Vanke meet debt obligations. This injection aims to prevent default, allowing Vanke to pay 2.8 billion yuan in principal and interest by January 30, after securing bondholder approval for maturity extensions on some notes.

Shenzhen Metro Group Co. Ltd.: Shenzhen Metro Group Co. Ltd. is a state-owned railway operator and the largest shareholder of China Vanke Co. Ltd. It recently provided a 2.36 billion yuan three-year loan to Vanke at a 2.34% interest rate to help the struggling property developer meet debt obligations and avoid default. This support comes as Vanke faces a liquidity crunch amid China's prolonged property slump.

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What Happened When

Late 2025：: Shenzhen Metro and Vanke signed a framework agreement capping shareholder loans at 22 billion yuan, with Vanke having drawn down 21.38 billion yuan.

Tuesday, January 28, 2026：: Vanke disclosed that Shenzhen Metro is providing a three-year, 2.36 billion yuan loan at an interest rate of 2.34%.

Tuesday, January 28, 2026：: Vanke announced it had secured bondholder approval to extend the maturities of two medium-term notes originally due in late 2025. The approved deals require 40% principal plus interest to be paid by late January 2026, with the remaining 60% extended by one year.

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