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China Vanke has proposed to repay 40% of a yuan bond due later this month in exchange for a one-year extension, as it manages rising repayment pressure. The developer is facing significant debt maturities between April and July, with total bond obligations of 14.7 billion yuan for the year. This comes after earlier successful extensions of three bonds and amid a broader property sector crisis in China. With a record net loss and declining sales, Vanke's financial health remains under stress, raising concerns about market confidence and potential spillover effects on the economy.
China Vanke Co is offering bondholders an upfront repayment of 40% of the principal on a yuan-denominated bond due later this month, in exchange for extending the maturity by one year, according to sources familiar with the matter. Advertisement
The proposal relates to a 2 billion yuan (USD 290 million) bond carrying a 3.11% coupon, which is scheduled to mature on April 23. A bondholder meeting is planned for April 17, with voting expected to conclude by April 20. Sources indicated that the discussions are part of the company's ongoing efforts to manage near-term liquidity pressure.
The developer had earlier secured investor approval in January to extend three yuan bonds under similar repayment terms. However, repayment obligations remain high, with the company previously stating that it faces particularly acute pressure between April and July, when bonds worth 11.3 billion yuan are due. Overall, around 14.7 billion yuan in bonds are set to mature this year.
Shares of the company responded positively to the development, with its Shenzhen-listed stock rising 3.2% by midday and its Hong Kong-listed shares gaining 3.5%.
China Vanke, one of the country's most recognised property developers, carries debt of around USD 50 billion and remains at the centre of China's ongoing real estate sector crisis. Several developers in the country have already defaulted amid tightening liquidity and declining sales.
The company reported a record net loss of about 88.6 billion yuan in 2025, while its contracted sales dropped to their lowest level in 14 years. The weakening financial performance has added to concerns about its ability to meet future obligations.
Market participants have also been closely monitoring potential support measures. In the past few months, financial publication Octus reported that Shenzhen's municipal government was preparing a rescue package worth about 80 billion yuan for the state-backed developer. Earlier, its major shareholder Shenzhen Metro, which is owned by the municipal government, had extended loans of around 22 billion yuan to the company.
The company had surprised investors late last year when it made its first known request to extend a bond repayment, as it was widely considered to be in a relatively stronger financial position compared to its peers.
China Vanke did not immediately respond to requests for comment on the current proposal.
Source Reuters
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