China Vanke says it faces short-term liquidity pressure

By Thomson Reuters Apr 14, 2024 | 8:36 PM

HONG KONG (Reuters) – State-backed China Vanke said it is facing short-term liquidity pressure and operational difficulty, but added that it has prepared “a basket of plans” to stabilise its business and cut debt.

Vanke has the support of Shenzhen’s state assets regulator as well as its largest shareholder, state-owned Shenzhen Metro, after reporting its situation to them, it also said in a filing that summarised comments made by the company in a meeting with analysts on Sunday.

The real estate developer also promised to complete projects and deliver apartments on time.

Vanke’s shares and dollar bonds slumped last week after S&P stripped its investment-grade status and the developer confirmed reports that an executive was being investigated, adding to woes for the embattled property sector.

(Reporting by Clare Jim; Editing by Edwina Gibbs)