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Bond Market News
Vanke’s CEO Reportedly Detained; No Plans to Extend Bond Maturities
January 17, 2025
China Vanke’s CEO, Zhu Jiusheng, was reportedly detained by police, as per state-backed media. The exact details of his detention remain unclear, and no specific charges have been disclosed. Vanke, the fourth-largest real estate company in China by sales, is partially owned by the Shenzhen government. It posed a net loss of RMB 9.9bn ($1.35bn) in 1H2024, on the back of a significant drop in home sales, due to the property market slump in China. Another media outlet reported that the Shenzhen government has dispatched a working group to Vanke, with the company possibly even facing a takeover and subsequent reorganization. The report noted that the Guangdong government had similarly sent a working group to Evergrande in December 2021.
Separately, Vanke’s is also said to have told investors that it had no plans to extend the maturity dates of its bonds, despite the broad sell-off in its notes. This comes on the back of online rumors that it was considering bond extensions. While most of its debts due this year are local notes, it also has a $423mn outstanding dollar bond maturing this May, in the form of its 3.15% 2025s. While Vanke did not mention whether it had prepared funds to repay debts due in Q1 this year, it plans to use cashflows from operations and asset sales for debt repayment. Vanke’s 3.15% 2025s have fallen 17 points this week to currently trade at 59.4 cents on the dollar.
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