China Vanke Co. Ltd. has obtained another emergency loan from its largest shareholder as the embattled developer faces nearly $2 billion in upcoming debt repayments and deepening liquidity stress.
In a Tuesday filing, Vanke said Shenzhen Metro Group Co. Ltd., a state-owned enterprise, has agreed to provide a shareholder loan of 1.681 billion yuan ($234 million). The funds will go toward servicing Vanke’s public bonds and interest on designated borrowings previously approved by Shenzhen Metro.
This marks the ninth direct capital injection by Shenzhen Metro this year alone, as authorities scramble to prevent one of China’s largest state-backed developers from defaulting amid a prolonged real estate downturn. The latest funding follows three tranches totaling 8.8 billion yuan over the past month, which helped cover 5.9 billion yuan in July bond maturities. In total, Shenzhen Metro has extended 24.4 billion yuan in loans to Vanke in 2025 so far.
The steady drip of lifelines underscores the severity of Vanke’s cash crunch and its increasing dependence on state bailouts. Once seen as one of the sector’s most stable players, the company is now shut out from conventional lending channels. Its situation reflects the widening scope of China’s real estate crisis, which began with private developers but has since spread to state-linked firms.
More repayments loom. Vanke faces 2 billion yuan in bond maturities this month, with another 11.8 billion yuan in principal across five domestic bonds due over the final four months of the year.
Meanwhile, the developer’s internal cash flow continues to shrink as sales deteriorate. Data from China Real Estate Information Corp. shows Vanke’s contracted sales from January to July fell 44% year-on-year to 82.1 billion yuan — a steeper decline than the 12.5% average decline posted by China’s top 100 developers during the same period.
Efforts by the Shenzhen government to coordinate more bank support have shown little progress, sources say. One person familiar with the matter said Vanke has very limited cash at the corporate level and will probably need continued state support unless new bank loans materialize.
The latest loan carries an interest rate of 2.34% and a term of up to three years, with interest payments due quarterly. Vanke can request an extension if it faces financial difficulties, subject to Shenzhen Metro’s approval. The creditor also retains the right to demand collateral.
Most of the earlier loans required Vanke to pledge assets. So far, the company has pledged 55.8% of its property management spinoff Onewo Inc., worth 12.2 billion yuan, along with equity in project companies and commercial real estate holdings.
Shenzhen Metro, which is owned by the city government, became Vanke’s top shareholder in early 2017. The group has taken a more active management role since the start of this year, alongside a series of major cash infusions.
Vanke’s financial troubles began in late 2023 as China’s property market crisis deepened. The firm staved off defaults in 2024 by selling assets and pledging additional collateral. However, its position has deteriorated further in 2025. By the end of last year, its short-term interest-bearing debt stood at 158.3 billion yuan — up 95.9 billion yuan from the previous year — including both bonds and bank loans.
Shenzhen Metro has reiterated its commitment to supporting Vanke using legal and market-based tools to help the developer manage its maturing liabilities.
Contact reporter Han Wei (weihan@caixin.com)
