China Vanke fails to secure delay on $284m bond payment, gets just 5 days breathing space

China Vanke fails to win approval to delay $284 million bond payment.

China Vanke, one of the country’s largest state-backed property developers, said in a Hong Kong stock exchange filing on Monday that it failed to secure bondholder approval to delay a bond payment due the same day.

The rejection followed a three-day vote that ended late on Friday, preventing the company from pushing back repayment by one year. As a result, Vanke now faces a five-business-day grace period to pay 2 billion yuan ($284 million). The developer said it plans to convene a second bondholder meeting within that window to continue seeking a resolution.

Vanke, long viewed as one of China’s more financially resilient developers due to its partial state ownership and historically conservative balance sheet, has nonetheless come under pressure as the prolonged property downturn squeezes cash flows, home sales and refinancing options across the sector. The failed vote underscores the fragile confidence among creditors even toward higher-quality names in China’s struggling real estate industry.

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The setback raises fresh concerns over credit risk in China’s property sector, signalling that funding pressure is no longer confined to weaker developers and could keep investor sentiment cautious.

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Earlier (weeks ago)