Beijing: China Vanke has asked investors for more time to repay a major yuan denominated bond as financial pressure continues to build across China’s troubled property sector.
The company is seeking to extend the grace period on a 2 billion yuan domestic bond by a further 90 trading days. If approved this would push the repayment deadline to late April 2026. The bond originally matured in mid December 2025 and bondholders had already agreed to a short extension earlier.
Vanke has also proposed delaying full repayment for up to one year and has offered receivables from selected property projects as added security in an effort to win investor support. Bondholders are expected to vote on the proposal later this month.
At the same time the developer is holding talks with investors in two other yuan bonds worth a combined 4.8 billion yuan whose repayment dates have either arrived or are approaching. These discussions underline the scale of the cash strain facing the company despite its status as one of China’s biggest and most closely watched developers.
In recent days Vanke has taken further steps to ease near term pressure. Domestic banks have agreed to defer interest payments on some loans until September 2026 providing temporary relief to its cash flow. The company is also preparing a broader debt restructuring plan following guidance from authorities signalling that stop gap extensions may no longer be enough.
Market analysts say repeated requests for extensions show how deep the property downturn remains even for stronger and state backed firms. While Vanke has avoided a formal default so far the outcome of the upcoming bondholder votes will be critical for its short term stability and for wider investor confidence in China’s property market.
The case is being closely followed as a key test of how China manages stress in its real estate sector after years of falling sales tight funding and rising debt risks.