Vanke may adopt a familiar playbook in China to tackle debt crisis, say analysts

Vanke faces high rejection rates for bond extension proposals, seeking multiple grace period extensions before restructuring. Analysts view Vanke as a test case for local government support in distressed companies. Despite a loan from Shenzhen Metro, Vanke narrowly avoided default with a grace period extension approval. Execution risk remains high, and a restructuring with haircuts may be necessary to ease repayment pressure.