China Vanke Dollar Bonds Tumble to Record Lows as Crisis Worsens

China’s real estate sector suffered another blow after China Vanke Co. proposed delaying repayment on a local bond, sending some of its notes plunging to record lows and fueling concerns about Beijing’s willingness to support even the largest distressed developers.

Vanke, once the nation’s largest builder by sales, is seeking to delay paying principal on a 2 billion yuan ($283 million) note due Dec. 15, according to a filing to the Shanghai clearing house late Wednesday. The company’s dollar bond due in 2027 fell 17 cents Thursday morning to about 23 cents, the lowest since issuance in 2017. That brings losses on the note to 60% just this week.