Vanke Calls Second Bondholder Vote on Bond Extension as Default Deadline Looms
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Signage for China Vanke Co. atop the Hongqiao Vanke Center in Shanghai on Jan. 17, 2025.
China Vanke Co. has called a second bondholders’ meeting to seek approval for extending the maturity of a 2 billion yuan ($282 million) note after its initial proposal failed to pass.
The property developer said on Monday that it will reconvene bondholders on Dec. 18 to re-vote on an extension plan for its medium-term note known as “22 Vanke MTN004,” with the voting deadline set for 10 a.m. on Dec. 22.
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- China Vanke is holding a second bondholders’ meeting on Dec. 18 to seek approval for a one-year extension on a 2 billion yuan note after the first proposal failed.
- If rejected again, Vanke risks default as the grace period ends Dec. 22; concerns remain among bondholders over repayment structure and creditor protections.
- Vanke, backed by Shenzhen Metro’s 31.5 billion yuan liquidity aid earlier in 2025, faces over 364 billion yuan in total debt, amid ongoing financial strain.
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Who’s Who
- China Vanke Co.
- China Vanke Co. is a property developer facing financial strain amid China's property downturn. It is attempting to extend the maturity of a 2 billion yuan bond to avoid default, having called a second bondholders' meeting after an initial proposal failed. The company's largest shareholder is state-owned Shenzhen Metro Group, which has provided liquidity support.
- Shenzhen Metro Group
- Shenzhen Metro Group is a state-owned company and the largest shareholder of China Vanke Co. It provided 31.5 billion yuan in liquidity support to Vanke earlier this year to help with near-term debt repayments, though this support was capped in early November.
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What Happened When
- December 2022：
- Vanke issued the '22 Vanke MTN004' medium-term note with a three-year tenor.
- Since 2023：
- Vanke has faced mounting financial strain as China’s property downturn spread to mixed-ownership firms.
- 2024：
- Vanke's liquidity pressures intensified.
- February 2025：
- Shenzhen Metro began providing liquidity support to Vanke, totaling 31.5 billion yuan by the end of the support period.
- As of mid-2025：
- Vanke’s total interest-bearing liabilities exceeded 364 billion yuan.
- Early November 2025：
- Liquidity support from Shenzhen Metro was capped.
- December 10, 2025：
- Vanke convened its first bondholders' meeting regarding the bond extension.
- December 13, 2025：
- Vanke disclosed that all three extension-related resolutions failed to pass at the first bondholders' meeting.
- December 15, 2025：
- Original maturity date of the 22 Vanke MTN004 bond.
- December 15, 2025：
- Shenzhen officials pledged to contain property developer risks at a financial work meeting.
- Late on December 15, 2025：
- Vanke circulated draft proposals for the second bondholders’ meeting.
- December 16, 2025：
- Vanke announced it would hold a second bondholders' meeting.
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