Vanke’s Record Loss Leaves Developer at Mercy of State Backer

China Vanke Co.’s $12 billion record loss underscores how its ability to avoid default depends on how far its state shareholder is willing to support the stricken property developer.

The homebuilder lost about 82 billion yuan ($12 billion) last year, it said in a preliminary earnings statement late Friday. That is the equivalent of about 40% of its total equity attributable to shareholders at the end of the previous year, a sign of how quickly its losses are eating into capital buffers.