China’s Last ‘Too-Big-to-Fail’ Housing Giant Loses State Support
Vanke’s mounting problems are raising alarms about a $50 billion debt pile.
Residential buildings under construction at China Vanke's Langshi Flower Language development in Shanghai.
Photographer: Raul Ariano/BloombergThe bombshell hit on a late Sunday afternoon.
China Vanke Co., the last big survivor of the country’s yearslong property crunch, sent investors an innocuous-looking announcement about a $3.1 billion loan agreement with a state-owned shareholder. But the Nov. 2 statement contained a twist: Shenzhen Metro Group Co., which had given unwavering support to the developer for nearly two years, now set a cap on any further financing. It also demanded that Vanke stump up collateral for its loans — including for the $2.8 billion already drawn down.