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Debt Advisory Firm Urges Vanke’s Dollar Bondholders to Consider Calling a Default
January 13, 2026
Debt advisory firm PJT Partners has urged holders of China Vanke’s dollar bonds to consider declaring a default, citing “cross-acceleration” clauses triggered by missed payments on onshore notes in December. While no formal declaration has been made, PJT’s outreach suggests the imminent formation of an ad hoc creditor committee. Vanke currently has $1.3bn in outstanding dollar bonds, which could be called for immediate full payment if at least 25% of holders agree that a cross-default has occurred. Barclays estimates that in a worst-case scenario, recovery rates could be as low as 0.9%. Although Vanke is attempting to delay onshore payments and draft a state-mandated restructuring plan, it faces resistance from bondholders who are demanding stronger credit enhancements or guarantees from state-owned shareholder Shenzhen Metro Group. However, officials have indicated that further state support is unlikely.
Vanke’s dollar bonds were trading weaker at 15 cents on the dollar.
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