Acording to news agency Reuters,
China Vanke, a state-supported real estate developer, has acknowledged encountering short-term liquidity constraints and operational challenges. However, the company stated that it has devised “a range of strategies” to stabilize its operations and reduce debt.
China Vanke
On Monday, Vanke’s shares on the Hong Kong stock exchange closed down by 0.8% after reaching a record intraday low. Meanwhile, its shares on the Shenzhen stock exchange saw a slight increase of 0.6%, stabilizing following nine consecutive sessions of decline.
In recent weeks, investors have been offloading shares and bonds of Vanke due to liquidity worries, prompting an unusual intervention from the central government to assist the Shenzhen-based company. Compounding its challenges, S&P became the final major credit rating agency to downgrade its investment grade status last week.
During a meeting with analysts on Sunday, chaired by Chairman Yu Liang and CEO Zhu Jiusheng, the developer disclosed that it had briefed Shenzhen’s state asset regulator and its largest shareholder, state-owned Shenzhen Metro, about its situation. The information was summarized in a filing outlining the company’s remarks.
