Vanke reports 2.2 billion USD loss amid Chinese property slump

Chinese real estate developer Vanke reported a net loss of 14.95 billion yuan (approximately 2.2 billion USD) for the first half of the year, an increase from the 11.95 billion yuan loss recorded during the same period last year. The company's revenue also saw a significant decline, dropping 33% to 70.17 billion yuan.

Vanke, which lists the state-owned Shenzhen Metro Group as its largest shareholder, has been engaged in restructuring negotiations with domestic bondholders. According to Fitch, the company has restructured 9.3 billion yuan in bonds, repaying 40% of the principal while extending the maturity of the remaining balance by one year. Shenzhen Metro Group provided additional loans to facilitate this partial repayment.

As of the end of June, Vanke held 53 billion yuan in cash and cash equivalents, down from 55 billion yuan in late March. Analysts noted that much of this liquidity may be frozen for project development, limiting its availability for debt servicing. Fitch also indicated that an additional 20 billion yuan in debt is set to mature between December 2026 and November 2027.