Latest news with #Vanke
Business Times
19-05-2025
- Business
- Business Times
Vanke bond's 144% rally shows credit strain easing after rescue
FINANCIAL strains are easing at China Vanke after its largest state shareholder threw a lifeline to the company that proved too big to fail. Since local government officials intervened in January to stabilise Vanke's operations and finances, the builder has repaid publicly traded bonds with a combined principal of 14.4 billion yuan (S$2.6 billion). That included a 3.15 per cent US dollar bond with US$423 million outstanding which matured on May 12, its only such note of the year, Bloomberg reported. In four months, its longer dated US dollar bonds have bounced more than 44 US cents to above 74 US cents on the US dollar. While that's still a distressed level, the move suggests investors holding such assets since Jan 16 through the turmoil this year may have amassed a return of nearly 144 per cent as of May 16. Vanke's stocks remain lacklustre, with its Hong Kong and mainland-traded shares both down about 6 per cent since the late January overhaul. 'Near-term default risks have likely abated, considering the expectation of shareholder support,' Leonard Law, a senior credit analyst in Lucror Analytics Singapore, wrote in a note last week. Government rescue efforts for Vanke are trickling out. Since late April, Vanke announced it received two generous loans from its largest shareholder Shenzhen Metro Group. Vanke may prepay at any time, extend the repayment period with the lender's consent, and is allowed to pay the interest together with the principal at maturity, according to terms disclosed in exchange filings. 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 A total of US$6.1 billion of Vanke's debt has emerged from distressed trading levels since Jan 17, according to data compiled by Bloomberg News. The recent two loans stood out from the previous ones extended around February, as no requests for asset pledging were mentioned. 'These two loans without collateral signal Shenzhen Metro has stepped up its support for Vanke,' said Yan Yuejin, vice-president of Shanghai E-house's research arm. All of Shenzhen Metro's four loans this year carry a floating interest rate of 76 basis points lower than China's benchmark lending rate for short-term loans, which stood at 2.34 per cent as at early May. They are all earmarked to help Vanke repay principal and interest on publicly issued bonds, filings showed. 'We recognise Vanke's efforts to fulfil delivery and debt obligations,' with state help, Citigroup analysts led by Griffin Chan wrote in a May 1 report. Still, the Wall Street bank downgraded the company's stock to neutral due to its continued losses. Concerns linger Despite state backing, Vanke is not completely out of the woods. The builder and its subsidiaries still have 25.4 billion yuan of onshore bonds maturing or facing redemption this year, according to data compiled by Bloomberg. The maturity wall comes as the developer's contract sales continued to weaken, which is set to widen its funding gap, according to Bloomberg Intelligence analysts Kristy Hung and Monica Si. Fitch Ratings downgraded Vanke's long-term issuer default score by one notch to CCC+, a rating that indicates a default is a real possibility. Vanke's sales declined nearly 40 per cent on year in the first quarter, worse than Fitch's expectation of a 20 per cent full-year decline. The drop widened to 45 per cent in April from a year prior, according to China Real Estate Information Corp, more severe than an 8.7 per cent drop seen in peers. 'We expect the weak fundamentals for Vanke to continue without a rosy recovery of the overall sector,' Iris Chen, a credit desk analyst at Nomura International HK, wrote in a recent note in April. BLOOMBERG
Extra.ie
19-05-2025
- Business
- Extra.ie
Chinese property firms encourage investors to buy in Ireland due to housing crisis
Chinese investors have been encouraged to buy up Irish property due to the housing crisis here. Vanke is a Chinese licensed real estate company in Ireland that encourages Chinese investors to get involved in the property market in Ireland. In a now-deleted post, the company outlined ten reasons why people should invest in the Irish property market. Pic: Getty Images The first one stated that Ireland's 'housing crisis' was a core reason to invest. It stated: 'The population is growing fast and the new land available for development are also very limited.' 'Property prices in Ireland are set to continue rising. Investment property in Ireland is certainly an attractive option.' The remaining nine reasons were left on the site, but the first one citing the housing crisis was deleted after tried to contact Guangqian Yu, who runs Vanke, for comment. He was then sent a text message outlining the reason for getting in touch, citing the website's comments that the housing crisis was a good reason to invest in Ireland. In response, he said: 'Sorry, just seen this. Ireland is a free country, and you can write whatever you want to generate hate and get attention. It is ok, just do whatever you want, and thanks for the free media coverage. Pic: Getty Images 'There are ten reasons to invest in Ireland, and you pick up the first reason for your own gain. I don't like the way you talking to me. If you talk to me with some respect, I may give you an exclusive interview in the future, but now I see you as a bully just like Mr Trump to China. 'You need to learn how to become friends, then enemies. Good night.' However, the following morning, when checked the company's website again, the housing crisis was no longer listed as a reason to invest in Ireland. The company also highlights that Ireland is a 'hotspot' and is one of the most desirable places to invest after Lisbon and Berlin. It also says the Irish market is stable with 'low risk' and there are 'excellent yields' with earnings grossing out at 7-10%. The best properties to buy are 'small apartments' located in Dublin, it said. Pic: Getty Images The company also helps with recommendations for solicitors for purchasing a property. Its website states: 'In Western society, lawyers have a very high status. 'The lawyer system is strict and supervised by the Bar Association, and is absolutely trustworthy. Therefore, there is no need to worry about legal issues when buying a house in Ireland.' A review of Vanke's Facebook page shows it is promoting houses principally on the southside of Dublin. One house in Stepaside on the market for €667,500 was being advertised, as was a house in Foxrock for € 1.5 million. Another house in Killiney was promoted on its Facebook page with a starting price of €595,000. The company has been in the market for close to a decade and is registered as an estate agent in Ireland. According to the latest research from Owen Reilly Estate Agents, 12% of its buyers were from Asia in the first quarter of this year, with Irish buyers accounting for 65%. Europeans accounted for 20%, with international buyers accounting for 3% of buyers. According to its 2022 report, 8% were Asian. Pic: Getty Images Lecturer and housing policy analyst Lorcan Sirr said that the housing crisis in Ireland was an 'opportunity for investors' and pointed to comments by Robbie Hughes of Link Group, which managed distressed mortgages for Cerberus Capital Management back in 2019, when he said Ireland was the 'gift that keeps giving'. Pat Davitt, chief of the Institute of Professional Auctioneers and Valuers, said he had heard of the entrance of a number of similar companies into the Irish market. He added: 'What seems to be the case is that there are individual Chinese agents who are licensed in Ireland and bringing Chinese investors to Ireland to invest in property. That certainly is happening.' He said it was a 'statement of fact' that there was a housing crisis in Ireland, adding: 'It is an up-to-date reason for coming. 'They are coming and buying individual properties, there is that sort of thing going on alright. There is quite a bit of it.' He said most of the activity was around Dublin and some of the other cities in Galway and Cork Mr Davitt said they had seen a number of Chinese people sign up to get an estate agent's license. Pic: Getty Images He added: 'They are doing that for a reason, that is to bring investors in. It has been happening in the last two or three years. They are bringing investors here.' Mr Davitt said he wasn't clear on how much this was distorting the market, if at all, and pointed out that Irish people had bought property in China. He said: 'There were Irish people going all across the world buying property, and China was one of them.' Sinn Féin's Eoin Ó Broin said that the practice should be stamped out and that, in many cases, it was small institutional investors looking to purchase secondhand homes and use them as rental properties. He added: 'These kind of purchase needs to be outlawed. There has been a practice for some time of small to medium-sized funds, some are domestically funded and some are international, and they are getting into the second-hand home market and often engaging in very aggressive bidding for second-hand homes.' Eoin Ó Broin. Pic: Leah Farrell/ He said this was denying owner-occupiers purchasing homes. Mr Ó Broin added that he had noticed the practice increasing in the last 'month or two'. Asked if the Government was planning to take any steps to stop individuals from outside Ireland buying up properties, a Department of Housing spokesman said: 'Programme for Government 2025 commits to introducing a new national housing plan to follow Housing For All. 'Any proposals for new measures will be considered in this context. The Department of Finance has responsibility for taxation matters.' A Department of Finance spokesman said: 'The Department of Finance is working with the Department of Housing regarding the introduction of the new housing plan.'
Reuters
30-04-2025
- Business
- Reuters
China Vanke slips on deeper quarterly losses, A-share sale plan
HONG KONG, April 30 (Reuters) - Shares of China Vanke fell on Wednesday after the state-backed property developer posted steeper losses in the first quarter and approved a plan to sell A-shares representing 0.61% of its total share capital. Vanke's Hong Kong-listed shares dropped as much as 2.9% in early trading, while shares listed in Shenzhen ( opens new tab eased 2.6%. Vanke, one of China's leading property developers, launched a senior management reshuffle in January that increased state oversight and intervention to contain any non-repayment risks amid a prolonged market slump. The company's net loss in January-March came in at 6.2 billion yuan ($852.26 million), compared with a loss of 362 million yuan a year ago, according to filings late on Tuesday. Its core loss, which excludes fair value changes, deteriorated to 6 billion yuan from 1.7 billion yuan. Vanke attributed its quarterly net loss — which came on the heels of a record full-year loss of 49.5 billion yuan in 2024 — to a decline in property delivery volumes and a narrowing gross margin. During the reported period, Vanke secured 13.9 billion yuan in new financing and refinancing, with its average financing cost falling by 21 basis points year-on-year to 3.39%. In a separate filing, Vanke said its major shareholder, state-owned Shenzhen Metro, will extend a 3.3 billion yuan loan to the company to repay public bonds. The new shareholder loan follows a 2.8 billion yuan lending in February, showing another sign of intensified efforts by the government to stabilise the property developer. Vanke said it will switch its auditor to Deloitte from KPMG, ending a relationship of more than 20 years with the latter firm. ($1 = 7.2748 Chinese yuan)
South China Morning Post
30-04-2025
- Business
- South China Morning Post
Vanke's first-quarter loss deepens to US$860 million despite Shenzhen Metro Group rescue
China Vanke's first-quarter loss widened, underscoring the property developer's challenges even after the government in its hometown of Shenzhen stepped in to take control of operations. Advertisement The company reported a net loss of 6.25 billion yuan (US$860 million) in the three months ended in March, steepening from a 362 million yuan loss a year earlier, according to a Hong Kong exchange filing on Tuesday. The loss stemmed mainly from declines in home settlements and gross margins, Vanke said. Margins dropped to 6.1 per cent from about 10 per cent last year, according to Bloomberg calculations on reported figures. As part of a government-led overhaul in January, Vanke's two top executives stepped down and an official from Shenzhen Metro Group, its largest state shareholder, took over as chair. 10:57 Boom, bust and borrow: Has China's housing market tanked? Boom, bust and borrow: Has China's housing market tanked? The loss followed significant write-offs in the final quarter last year. Bloomberg Intelligence (BI) said Vanke's contracted sales risk dropping 30 per cent this year due to weakening buyer confidence and a shrinking supply pipeline, according to a note earlier this month.
Business Times
29-04-2025
- Business
- Business Times
China Vanke's quarterly loss widens to 6.25 billion yuan after overhaul
[NEW YORK] China Vanke's first-quarter loss widened, underscoring the property developer's challenges even after the government in its hometown of Shenzhen stepped in to take control of operations. The company reported a net loss of 6.25 billion yuan (S$1.1 billion) in the three months ended in March, steepening from a 362 million yuan loss a year earlier, according to a Hong Kong exchange filing on Tuesday (Apr 29). The loss stemmed mainly from declines in home settlements and gross margins, Vanke said in the filing. Margins dropped to 6.1 per cent from about 10 per cent last year, according to Bloomberg calculations on reported figures. As part of a government-led overhaul in January, Vanke's two top executives stepped down and an official from Shenzhen Metro Group, its largest state shareholder, took over as chair. The loss followed significant write-offs in the final quarter last year. Bloomberg Intelligence (BI) said Vanke's contracted sales risk dropping 30 per cent this year due to weakening buyer confidence and a shrinking supply pipeline, according to a note earlier this month. 'This could result in a 74 billion yuan shortfall in its sales proceeds this year versus last year,' Kristy Hung, a property analyst at BI, wrote in the note. 'A deepening cash crunch raises the stakes in any rescue.' 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 Other key figures: Revenue declined 38 per cent to 38 billion yuan Total cash slipped to 75.5 billion yuan from 88.2 billion yuan at end-2024 Vanke's sold but unbuilt inventory was worth about 219 billion yuan at the end of March Liquidity support Shenzhen Metro plans to lend Vanke 3.3 billion yuan to help it repay bonds in the open market. The loan, with a three-year term, charges a floating rate that stands at 2.34 per cent as at Tuesday. The developer also plans to sell some treasury shares to replenish liquidity. Vanke has 26.3 billion yuan of onshore and offshore bonds maturing this year, Bloomberg-compiled data showed. 'This year should remain tough for Vanke's earnings due to subdued profitability of presold projects in prior years and increased asset impairments,' said Jeff Zhang, an analyst at Morningstar. 'However, we expect a bottom-line turnaround in 2026 as the gross margins of projects acquired since 2022 have improved materially.' BLOOMBERG
