Chinese Builder Vanke Gets Support From Local Regulator, Biggest Holder

  • Builder also says will repay offshore, onshore debts on time
  • Some bonds set for record gains after surging up to 12 cents

Apartment blocks under construction at a Vanke Co. residential development in Xining, Qinghai province, China.

Photographer: Qilai Shen/Bloomberg
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China Vanke Co., the country’s second-largest developer by contracted sales, said it will repay its debts on time after getting signals of support from a local regulator and its biggest shareholder Monday.

Shenzhen’s State-owned Assets Supervision and Management Commission has sufficient confidence in Vanke and if needed has enough cash and tools to support the builder in a legal and market-driven way if it “faces an extreme situation,” said senior official Ye Xinming.