China Vanke Co. received another round of financial support from authorities, with its largest state shareholder planning to offer up to 4.2 billion yuan ($579 million) to help the distressed developer repay outstanding debt.
Chinese authorities are considering a plan to assist China Vanke in covering a funding shortfall of about 50 billion yuan ($6.84 billion) this year, enabling the property developer to repay its public and private debt,
Chinese authorities are working on a proposal to help China Vanke Co. plug a funding gap of about 50 billion yuan ($6.8 billion) this year, according to people familiar with the matter, highlighting the government’s support for the distressed developer.
CHINA VANKE (02202.HK) announced that its largest shareholder, Shenzhen Metro Group (SZMC), intends to provide the company with a loan not exceeding RMB4.2 billion. This loan is to be used for repaying the principal and interest of bonds issued by CHINA VANKE in the open market.
Ratings agency Moody's downgraded China Vanke further on Tuesday and maintained its negative outlook on the embattled property developer that is grappling with a liquidity crisis and sluggish sales impacted by an ailing property sector.
Chinese developers struggled to extend a rally in credit and share markets Thursday, underscoring investor desire for more government steps to help the property sector.Most Read from BloombergWhy American Mobility Ground to a HaltSaudi Arabia’s Neom Signs $5 Billion Deal for AI Data CenterSpaceX Bid to Turn Texas Starbase Into City Is Set for Vote in MayCutting Arena Subsidies Can Help Cover Tax Cuts,
China Vanke (CHVKF) has secured a 2.8 billion yuan ($383.12 million) loan from its major shareholder, state-owned Shenzhen Metro to repay debt, indicating further support from the government for the cash-strapped developer.
CHINA VANKE (02202.HK) rallied in the afternoon, peaking at $6.45. It last printed at $6.33, up 16.36%, with 167 million shares traded, involving $979 million. According to Bloomberg, China is working on a plan to help Vanke fill a funding gap of about RMB50 billion.
If a bail-out for Vanke is forthcoming, China’s leaders will have blinked. Although the rescue would be organised by local authorities, it would have required the approval of Beijing’s top dogs.
Reuters on MSN13d
China Vanke gets US$383 million loan from state shareholderHONG KONG: Cash-strapped China Vanke said its major shareholder, state-owned Shenzhen Metro, is giving it a 2.8 billion yuan (US$383.12 million) loan, in a sign the government is stepping up efforts to stabilise the property developer. Vanke, in return ...
Developer stocks surge by as much as 20 per cent after a report that authorities are preparing to cover China Vanke’s funding gap.
Chinese authorities are working on a proposal to help China Vanke plug a funding gap of about 50 billion yuan ($6.84 billion) this year, Bloomberg reported on Wednesday, citing people familiar with the matter.
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