China’s real estate sector came under fresh pressure on Thursday after China Vanke Co., one of the country’s most prominent developers, announced plans to defer repayment on a major domestic bond—rekindling concerns over a deep-rooted debt crisis in the industry.
Vanke disclosed late Wednesday that it is seeking approval from bondholders to postpone the principal repayment of a 2 billion yuan (approximately USD 283 million) onshore note due December 15. The request triggered a sell-off across the company’s securities, with its Shenzhen-listed shares tumbling more than 6% and its onshore bonds extending their downward slide. A separate dollar-denominated bond due in 2027 also plunged sharply, dropping 17 cents to around 23 cents—marking its lowest level since issuance and representing a steep weekly loss of about 60%.
The sentiment quickly spilled over to Hong Kong-listed peers, reflecting growing investor unease about the state of China’s property market. Developers including Sunac China Holdings, Shimao Property Holdings, New World Development, and Longfor Properties saw their share prices slip between 0.5% and 5% during the session.
Once regarded as one of the sector’s stronger and more stable players, Vanke’s move signals mounting stress even among top-tier developers and raises fresh doubts over the extent of policy support from Beijing. The industry continues to reel from prolonged declines in home sales and high-profile defaults involving major names such as China Evergrande Group and Country Garden Holdings.
Vanke’s bond extension request marks another setback for the sector’s recovery efforts—reinforcing market fears that the debt turmoil, now stretching into multiple years, may take longer to resolve than previously hoped.
