China Vanke Pressure Mounts as Insurers Seek Private Debt Solution
- Executives from state insurers traveled to Shenzhen this week
- Vanke’s bonds and shares have been sold on concerns over debt
Source: Bloomberg
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China Vanke Co. is facing deepening pressure as several major insurers seek to protect their privately issued debt on concerns over potential liquidity stress at the nation’s second-largest developer, according to people familiar with the matter.
At least three Beijing-based insurers sent executives to Vanke’s headquarters in Shenzhen this week to discuss debt repayment plans under the local government’s coordination, said the people, asking not to be identified discussing a private matter. Options include extending the deadline for repayment by a year, adding collateral and issuing bonds, the people said.