Vanke Pledges Entire Stake in Management Unit to State Backer

Residential buildings under construction at a China Vanke Co. development in Shanghai.

Photographer: Qilai Shen/Bloomberg

China Vanke Co. has pledged all of the shares it holds in a listed property management unit to Shenzhen Metro Group Co., giving the state shareholder one of its best assets as default fears pile up.

The developer’s entire 57.16% stake in Hong Kong-listed Onewo Inc. is now pledged to Shenzhen Metro, after the latest agreement to offer a 1.33% stake as collateral, according to an exchange filingBloomberg Terminal by the property manager late Friday. It’s part of a framework announced earlier this month that allows Shenzhen Metro to demand collateral or pledges from Vanke for its loan support.