Latest news with #YuLiang
South China Morning Post
15-05-2025
- Business
- South China Morning Post
Debt-laden China Vanke gets US$215 million loan from state-owned stakeholder
Indebted property developer China Vanke has secured a 1.55 billion yuan (US$215.4 million) loan from state-owned Shenzhen Metro Group, offering some respite as it looks to meet US$3.4 billion in debt obligations this year. Shenzhen's railway operator, Vanke's largest shareholder with a 27.2 per cent stake, is extending the loan to the cash-strapped developer to help cover interest and principal repayments, according to a stock exchange filing on Wednesday evening. The loan has a 36-month term and may be extended or repaid early upon mutual agreement. It carries an annual interest rate of 2.34 per cent, below the one-year loan prime rate banks offer to their most creditworthy clients. Repayments are structured with 0.5 per cent due every six months, with the remaining 97 per cent to be settled in the final instalment. Shenzhen Metro has given Vanke loans totalling 10.3 billion yuan this year, the filing showed. The financial support follows a government-led shake-up in February, when the southern city's authorities tightened control over the developer by appointing 10 new executives, replacing former CEO Zhu Jiusheng and chairman Yu Liang, who stepped down in January. The government intervention helped Vanke repay a dollar bond due on Monday, clearing its only such obligation of the year, Bloomberg reported, citing people familiar with the matter. But the positive development failed to ease growing concerns in the financial markets. Fitch Ratings on Wednesday downgraded Vanke's bonds further into junk territory, to CCC+ from B-. The agency also downgraded its Hong Kong subsidiary to CCC from CCC+.
Reuters
06-02-2025
- Business
- Reuters
Shenzhen government tightens control over Vanke with management changes, document shows
BEIJING, Feb 6 (Reuters) - The government in the Chinese city of Shenzhen has made 10 new management appointments at China Vanke ( opens new tab, according to an internal document seen by Reuters, in another move to tighten control over the property developer. Vanke, one of the best-known property company names in China and currently around a third owned by state-owned Shenzhen Metro, announced last month that Chairman Yu Liang and CEO Zhu Jiusheng have stepped down. Shenzhen Metro's Chairman Xin Jie became new chair of Vanke, whose financial woes have re-ignited concerns about the outlook for the crisis-hit property sector, while three other executives from Shenzhen state firms joined as executive vice presidents. In the latest move, 10 new appointments of executives from firms owned by the Shenzhen government asset manager, including Shenzhen Metro, at the mid-level management in Vanke were made this week, according to the document circulated internally. The roles of the executives at Shenzhen-based Vanke range from strategic investment to capital management and legal affairs to project development, the document dated Wednesday showed. Vanke declined to comment when contacted by Reuters on Thursday. Yu Liang, who stepped down from the role of chairman to executive vice president last month, will be in charge of macro research for strategy and real estate in his new role, according to a separate internal document. The latest development marks another step by the local government to increase state oversight and intervention to contain any non-repayment risks as the developer faces several debt maturity deadlines this year. Investors have cheered the last month's top management reshuffle that reinforced the government support, as it signalled the removal of near-term default risks and hoped it would bring some stability to the struggling property sector. Investors are seeing Vanke's ability to meet repayment obligations as an acid test of homebuyer confidence in the world's second-largest economy, amid initial signs of stabilisation in the property sector in the past few months. They worry that worsening financial woes at Vanke, which has forecast a record $6.2 billion net loss for 2024, could further shut off financing to the sector, squeezing developers that have not defaulted.
Yahoo
28-01-2025
- Business
- Yahoo
Vanke's No. 1 investor installs chairman in ailing developer to guide its way out of debt
Embattled builder China Vanke, once the second-largest Chinese developer by sales, reshuffled its management while forecasting a record US$6.2 billion net loss for 2024 as it struggles to get out from under US$4.9 billion in debt maturing this year. The company named a chairman with a state-linked background, sending positive signals about its ability to pay its debts after a bond sell-off triggered ratings downgrades from Fitch Ratings and S&P Global a week ago. The news boosted prices of Vanke's bonds. Yu Liang resigned as chairman due to "work adjustment reasons", but would remain with the company as a director, Vanke said in a filing with the Hong Kong stock exchange on Monday. The new chairman Xin Jie is also chairman of state-owned Shenzhen Metro Group, the developer's largest shareholder. Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team. With assets of more than 5 trillion yuan (US$689 billion), the Shenzhen State-owned Assets Supervision and Administration Commission (SSASAC) has "the ability, strength and enough 'bullets' to support Shenzhen Metro Group to promote a stable development of Vanke through all possible means", an SSASAC representative said on Monday, according to state-owned newspaper Nanfang Daily. The asking price of Vanke's bond maturing in 2025 advanced 11 per cent, while the asking price of its bond maturing in 2029 rose 9 per cent, according to Dealing Matrix, a bond information provider. Vanke said in a separate filing that it expects a net loss of 45 billion yuan for 2024, down from a 12 billion yuan net profit in 2023, citing falling sales and profit margins, provisions for credit and inventory impairments, and losses in bulk asset and equity transactions. Earlier, the company reported that total sales plunged 34.6 per cent year on year in 2024 to 246 billion yuan. Despite the state-backed expression of confidence in Vanke's fate, some analysts raised concerns. "Vanke's issue stems from the imbalance between supply and demand in China's housing market," said Shen Meng, director at Beijing-based investment firm Chanson & Co. "With demand waning, no matter how many homes are built, they struggle to sell, preventing the formation of a closed cash-flow loop. While state-owned enterprises can offer financial support, they can't solve the problem of selling the properties." Xin has served as a Vanke director since July 2020 and was vice-chairman of the company's board from October 2023 to this month. Yu Liang, then chairman of China Vanke, speaks at a press briefing in March 2018 in Hong Kong. Photo: Edward Wong alt=Yu Liang, then chairman of China Vanke, speaks at a press briefing in March 2018 in Hong Kong. Photo: Edward Wong> CEO Zhu Jiusheng also resigned from his role, due to health issues, and would hold no position in the company, Vanke's filing said. The management reshuffle followed a report that Zhu was detained by public security authorities, which state media outlet The Economic Observer reported on January 16 but later deleted. On January 20, Fitch downgraded Vanke's long-term foreign and local-currency issuer default ratings (IDRs) to B- from B+. It also lowered the long-term IDR of Vanke Real Estate (Hong Kong), a wholly owned subsidiary, to CCC+ from B, among other adjustments. Fitch has now cut the firm's creditworthiness five times since July 2023. This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2025. South China Morning Post Publishers Ltd. All rights reserved. Sign in to access your portfolio
Reuters
27-01-2025
- Business
- Reuters
China Vanke shares set to jump after senior management reshuffle
HONG KONG, Jan 28 (Reuters) - Property developer China Vanke's Hong Kong-listed shares were set to open 8.7% higher on Tuesday following the announcement of a senior management change. China Vanke ( opens new tab said on Monday that Chairman Yu Liang and CEO Zhu Jiusheng stepped down. The company forecast a record $6.2 billion net loss for 2024, deepening liquidity concerns.
South China Morning Post
27-01-2025
- Business
- South China Morning Post
China Vanke forecasts record US$6.2 billion loss, shuffles management
Embattled builder China Vanke , once the second-largest Chinese developer by sales, reshuffled its management while forecasting a record US$6.2 billion net loss for 2024 as it struggles to get out from under US$4.9 billion in debt maturing this year. The company named a chairman with a state-linked background, sending positive signals about its ability to pay its debts after a bond sell-off triggered ratings downgrades from Fitch Ratings and S&P Global a week ago. The news boosted prices of Vanke's bonds. Yu Liang resigned as chairman due to 'work adjustment reasons', but would remain with the company as a director, Vanke said in a filing with the Hong Kong stock exchange on Monday. The new chairman Xin Jie is also chairman of state-owned Shenzhen Metro Group, the developer's largest shareholder. With assets of more than 5 trillion yuan (US$689 billion), the Shenzhen State-owned Assets Supervision and Administration Commission (SSASAC) has 'the ability, strength and enough 'bullets' to support Shenzhen Metro Group to promote a stable development of Vanke through all possible means', an SSASAC representative said on Monday, according to state-owned newspaper Nanfang Daily. The asking price of Vanke's bond maturing in 2025 advanced 11 per cent, while the asking price of its bond maturing in 2029 rose 9 per cent, according to Dealing Matrix, a bond information provider. Vanke said in a separate filing that it expects a net loss of 45 billion yuan for 2024, down from a 12 billion yuan net profit in 2023, citing falling sales and profit margins, provisions for credit and inventory impairments, and losses in bulk asset and equity transactions.
