China Vanke fallout seen as smaller builder talks state support

The crisis at China Vanke is affecting state-owned builders like Overseas Chinese Town Enterprises, which is seeking to reassure bondholders about support from the state asset supervisor for bond repayments. The company is exploring options such as cash injections or asset transfers to stabilize its financial situation. Meanwhile, Vanke is struggling to secure creditor backing for bond extensions, prompting discussions on enhancing refinancing capabilities, including the potential issuance of longer-dated bonds. Chinese policymakers are also intensifying efforts to stabilize the housing market.