Vanke’s bondholders reject extension plan on 2 billion yuan of bonds, raising default risk


China Vanke failed to secure bondholder approval to extend by one year a bond payment due on Monday, a filing showed, increasing the risk of default for the developer and renewing concerns about the crisis-hit property sector.

The setback for state-backed Vanke, one of China’s highest-profile developers with projects in major cities, renews concerns about the property sector, where some of the country’s best-known developers have defaulted in recent years.

The rejection in a three-day vote that ended late on Friday gives the developer a grace period of five business days to pay 2 billion yuan (US$280 million) on the onshore bond, the filing to the National Association of Financial Market Institutional Investors showed.

Vanke may propose extending the grace period to 30 business days, said Yao Yu, founder of credit research firm RatingDog. “If bondholders approve, it would give the developer more time to communicate with investors and reach a consensus.”

Buyers of China Vanke’s Le Mont residential project in Tai Po at the sales office in Cheung Sha Wan on March 15, 2025. Photo: Nora Tam
Buyers of China Vanke’s Le Mont residential project in Tai Po at the sales office in Cheung Sha Wan on March 15, 2025. Photo: Nora Tam

Vanke did not respond to Reuters’ request for comment outside business hours on the rejection by bondholders.

  • Related Posts

    Baidu says AI now primary business driver despite 2% drop in first-quarter revenue

    Baidu has reached a historic milestone as its artificial intelligence businesses surged to become its primary revenue driver in the first quarter, despite a 2 per cent dip in overall…

    Continue reading
    Global growth of pure EVs faces hurdles in insurance, charging gaps, says BNP Paribas

    The global energy crisis may be pushing the balance towards pure electric vehicles (EVs) amid worries about surging petrol bills, but BNP Paribas is cooling down expectations as a lack…

    Continue reading

    Leave a Reply

    Your email address will not be published. Required fields are marked *