Latest news with #Vanke
Mint
16-07-2025
- Business
- Mint
China Vanke Seeks to Extend Some Bank Loans by Up to 10 Years
China Vanke Co. is seeking to extend some of its domestic bank loans by as much as 10 years, according to people familiar with the matter, a move that could help the state-backed developer reduce liquidity risks. The Shenzhen-based builder, one of China's largest by contracted sales, has made a preliminary proposal to several major Chinese banks in recent weeks for the extension, according to the people, who asked not to be identified as the matter is private. While some banks are still evaluating the plan, others are reluctant to agree until they get further guidance from regulators, the people added. Such long-term extensions could offer the company some breathing room on its repayment obligations. Vanke, which has been pummeled by China's prolonged property slump, recently said that its first-half loss may widen to as much as $1.67 billion, underscoring its financial challenges. China's financial regulators have pledged to step up support for real estate financing, though banks have been constrained by worsening profitability and concerns over a resurgence in bad debt. Commercial banks' net interest margin dropped to a record low of 1.43% at end of March. The measure has been below the 1.8% threshold that helps maintain reasonable profitability for more than two years. Total non-performing loans in the banking system reached a record 3.4 trillion yuan as of the end of March. While extending or restructuring some of these troubled loans may help contain headline bad debt figures and temporarily cushion the impact on bank profits, it risks obscuring the extent of asset quality deterioration — potentially leading to more severe consequences in the long run. Vanke had about 361 billion yuan of interest-bearing borrowings as of last year, 43.8% of which will mature within 12 months, according to its latest annual report. The majority of those were bank loans, which accounted for 257.9 billion yuan of Vanke's total liabilities. The company didn't immediately respond to a request for comment. Chinese officials have taken a number of steps to stabilize Vanke's operations and finances since the start of this year. Some of the firm's dollar bonds fell about 40% to deeply distressed levels in January before an official from Shenzhen Metro Group Co., its largest shareholder, took over as chair and local governments vowed to 'pro-actively support' Vanke's operations. The state-owned shareholder has since offered multiple loans totaling more than 15 billion yuan so far this year, according to data compiled by Bloomberg. Early this month, Vanke said it would apply for another loan of as much as 6.25 billion yuan from Shenzhen Metro. Excluding shareholders' loans, Vanke said in a filing this week that it had secured 24.9 billion yuan of new financing and refinancing during the first half, and had successfully completed repayment of 16.5 billion yuan in public debt. No offshore public debt is due before 2027, it added. This article was generated from an automated news agency feed without modifications to text.
The Standard
16-07-2025
- Business
- The Standard
Vanke seeks to extend some bank loans by up to 10 years
Employees walk past a logo of Vanke at its headquarters in Shenzhen, south China's Guangdong province, November 2, 2015. REUTERS/Tyrone Siu/File Photo
Business Times
16-07-2025
- Business
- Business Times
China Vanke seeks to extend some bank loans by up to 10 years
[BEIJING] China Vanke is seeking to extend some of its domestic bank loans by as much as 10 years, according to sources familiar with the matter, a move that could help the state-backed developer reduce liquidity risks. The Shenzhen-based builder, one of China's largest by contracted sales, has made a preliminary proposal to several major Chinese banks in recent weeks for the extension, according to the sources, who asked not to be identified as the matter is private. While some banks are still evaluating the plan, others are reluctant to agree until they get further guidance from regulators, the sources added. Such long-term extensions could offer the company some breathing room on its repayment obligations. Vanke, which has been pummelled by China's prolonged property slump, recently said that its first-half loss may widen to as much as US$1.67 billion, underscoring its financial challenges. China's financial regulators have pledged to step up support for real estate financing, though banks have been constrained by worsening profitability and concerns over a resurgence in bad debt. Commercial banks' net interest margin dropped to a record low of 1.43 per cent at end of March. The measure has been below the 1.8 per cent threshold that helps maintain reasonable profitability for more than two years. Total non-performing loans in the banking system reached a record 3.4 trillion yuan (S$609 billion) as at the end of March. While extending or restructuring some of these troubled loans may help contain headline bad debt figures and temporarily cushion the impact on bank profits, it risks obscuring the extent of asset quality deterioration, potentially leading to more severe consequences in the long run. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Vanke had about 361 billion yuan of interest-bearing borrowings as at last year, 43.8 per cent of which will mature within 12 months, according to its latest annual report. The majority of those were bank loans, which accounted for 257.9 billion yuan of Vanke's total liabilities. The company did not immediately respond to a request for comment. Chinese officials have taken a number of steps to stabilise Vanke's operations and finances since the start of this year. Some of the firm's dollar bonds fell about 40 per cent to deeply distressed levels in January before an official from Shenzhen Metro Group, its largest shareholder, took over as chair and local governments vowed to 'pro-actively support' Vanke's operations. The state-owned shareholder has since offered multiple loans totalling more than 15 billion yuan so far this year, according to data compiled by Bloomberg. Early this month, Vanke said it would apply for another loan of as much as 6.25 billion yuan from Shenzhen Metro. Excluding shareholders' loans, Vanke said in a filing this week that it had secured 24.9 billion yuan of new financing and refinancing during the first half, and had successfully completed repayment of 16.5 billion yuan in public debt. No offshore public debt is due before 2027, it added. BLOOMBERG
Yahoo
16-07-2025
- Business
- Yahoo
China's Property Crisis Just Got Worse--And Vanke Is Sounding the Alarm
China's property market is sinking againand fast. New-home prices across 70 cities dropped 0.27% in June, the sharpest decline in eight months. Second-hand home values slipped even more, down 0.61%, with all four tier-1 cities registering monthly declines of at least 0.5%. Residential sales slumped 12.6% year-over-yearthe worst this yearand real estate investment is now down 11.2% for the first half, hitting levels last seen at the peak of the pandemic. The sector's persistent drag is now weighing on broader economic confidence, especially as earlier stimulus efforts begin to lose steam. Investors were momentarily encouraged last week as whispers of fresh support picked up ahead of this month's Politburo meeting. That optimism lifted the Bloomberg Intelligence index of Chinese developersuntil it didn't. The index gave back 3.3% on Tuesday, with Vanke (VNKEF) tumbling 3.6% after warning its first-half loss could reach up to 12 billion yuan ($1.67 billion). It's the latest sign that even the biggest players are struggling to stay above water. Analysts at UOB Kay Hian flagged a clear trend of market weakening and see a higher chance of new policy signals emerging from the July meeting. Still, Beijing may not rush in. Some economists think policymakers could hold off on a major packageat least for nowto conserve options in case U.S. tensions resurface after a temporary trade deal expires in August. That puts investors on high alert for any policy language from top leaders in the weeks ahead. For now, the message is clear: the housing market isn't out of the woods, and the wait for decisive intervention may not be over. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-07-2025
- Business
- Yahoo
China's Property Crisis Just Got Worse--And Vanke Is Sounding the Alarm
China's property market is sinking againand fast. New-home prices across 70 cities dropped 0.27% in June, the sharpest decline in eight months. Second-hand home values slipped even more, down 0.61%, with all four tier-1 cities registering monthly declines of at least 0.5%. Residential sales slumped 12.6% year-over-yearthe worst this yearand real estate investment is now down 11.2% for the first half, hitting levels last seen at the peak of the pandemic. The sector's persistent drag is now weighing on broader economic confidence, especially as earlier stimulus efforts begin to lose steam. Investors were momentarily encouraged last week as whispers of fresh support picked up ahead of this month's Politburo meeting. That optimism lifted the Bloomberg Intelligence index of Chinese developersuntil it didn't. The index gave back 3.3% on Tuesday, with Vanke (VNKEF) tumbling 3.6% after warning its first-half loss could reach up to 12 billion yuan ($1.67 billion). It's the latest sign that even the biggest players are struggling to stay above water. Analysts at UOB Kay Hian flagged a clear trend of market weakening and see a higher chance of new policy signals emerging from the July meeting. Still, Beijing may not rush in. Some economists think policymakers could hold off on a major packageat least for nowto conserve options in case U.S. tensions resurface after a temporary trade deal expires in August. That puts investors on high alert for any policy language from top leaders in the weeks ahead. For now, the message is clear: the housing market isn't out of the woods, and the wait for decisive intervention may not be over. This article first appeared on GuruFocus. Sign in to access your portfolio
