China Vanke Faces Reality Check as Bond Extension Talks Drag On

Even more evidence is piling up that China Vanke Co. can no longer rely on state support, underscoring a dramatic reversal for the developer whose local government backing had until recently made the risk of default seem distant.

Vanke found itself on Monday having to offer better terms for its request to delay paying a local bond to creditors including the very state-owned banks that many investors had long assumed would help keep it afloat.