China Vanke says top managers have no plans to sell shares as it fights for survival

China Vanke’s senior executives have no plans to reduce their personal shareholdings, according to the distressed mainland developer, which is seeking to extend the repayment of its onshore debt to avoid a default.\nThe Shenzhen-listed developer on Thursday was responding to queries from investors on the exchange’s interactive platform, saying it had not received any notification from the executives regarding stake sale plans. Under the exchange’s rules, senior management were required to disclose any planned share sales at least 15 trading days before executing any transactions, it added.\nThe company said it had been “actively pushing forward mega-scale asset disposals”, in response to another investor query on why it had not accelerated asset sales amid bond repayment pressures.\nVanke said it had completed 19 bulk asset transactions in the first three quarters of this year totalling 6.86 billion yuan (US$970 million), covering commercial, office, hotel and apartment assets. The developer also said it had signed an agreement with China Tourism Group to exit its tourism business.\n\n\nVanke said it had broadened its asset exit channels through securitisation and infrastructure real estate investment trusts (Reits), and had established three pre-Reit funds.\nIts shares finished 0.6 per cent higher at 4.90 yuan in Shenzhen on Friday and rose 1.7 per cent to close at HK$3.61 in Hong Kong.\nInvestors are worried about the risks from the developer’s potential default and spillover effects for China’s property sector in general, after it missed repayment on a 2 billion yuan note.\nEarlier this week, the company proposed fresh terms to extend the repayment for the note by a year and the grace period to 30 days. The note, which matured on December 15, has a five-trading day grace period until Monday.\nVanke, once the bellwether of China’s property sector, could default on Monday if it fails to secure sufficient bondholder approval for its extension proposal, a scenario that could trigger a broader restructuring process.\nThe company is also seeking a similar extension for a 3.7 billion yuan note due on December 28, and plans to convene a bondholders’ meeting on December 22 to deliberate the proposal.\nThe distressed developer’s debt troubles have reignited concerns about China’s long-running property downturn, which has weighed on home sales, developers’ cash flows and investor confidence since a liquidity crunch first erupted in 2021, with major developers such as China Evergrande Group ordered to liquidate in January 2024.\nOn Wednesday, Fitch Ratings downgraded China Vanke to “C” from “CCC-”, and its Hong Kong subsidiary from “CC” to “C”, citing liquidity stress and default risk.\nVanke’s available cash fell to 60 billion yuan by the end of September from 69 billion yuan in June, most of which was presale deposits, according to the rating agency.\nFitch said the company might be unable to repay the nearly 6 billion yuan of capital-market debt maturing this month and another 12 billion yuan in 2026.\n