Vanke Bondholders Discuss Payment Delay With Shenzhen Officials

Some China Vanke Co. investors voiced concerns about its plan to delay bond payments at a meeting with Shenzhen officials on Sunday, according to people familiar with the matter, adding pressure on the embattled developer just days ahead of a scheduled vote on the proposal.

Financial and state asset regulators from the city of Shenzhen, which has provided financial aid to Vanke, asked bondholders to express their opinions on the one-year extension plan for a 2 billion yuan ($283 million) bond due Dec. 15, said the people, asking not to be identified discussing a private matter. One hedge fund investor warned that a default by Shenzhen-based Vanke could trigger systemic risks because the state-backed company is closely tied to the city, one of the people said.