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