【Epoch Times News, December 23, 2025】On December 23rd, Vanke Group Co., Ltd. (Vanke) announced that the extension proposal for the medium-term bond MTN004 Vanke was once again rejected, but a 30-day grace period for payment was granted.
Vanke stated in the “Notice Regarding the Disclosure at the Dealer’s Association of the Response Announcement to the Fourth Series of Medium-Term Notes for the Year 2022 Second Holders Meeting of 2025” released on the 23rd that the proposal for the medium-term bond MTN004 Vanke was not passed because “14 holders or proxies of MTN004 Vanke, accounting for 78.30% of the total voting rights, were against this proposal,” hence, “the proposal for the current holders meeting of MTN004 Vanke is not effective.”
This marks the second rejection of the bond extension plan.
On December 13th this year, the proposal to extend the principal payment deadline of MTN004 Vanke by 12 months was voted down. The principal payment date for this bond was December 15, 2025, with a remaining balance of 2 billion yuan (RMB) and an annual interest rate of 3%.
In the “Notice Regarding the Disclosure at the Dealer’s Association of the Extension of the Grace Period and Payment Arrangement for the Interest within the Grace Period of the Fourth Series of Medium-Term Notes of Vanke Co., Ltd. for the Year 2022″ also released on the same day, Vanke announced that the proposal to extend the grace period of the current medium-term notes was approved and effective. “The grace period for the repayment date of the principal and interest within the remaining period of the current medium-term notes is extended from 5 working days to 30 trading days,” with the expiration of the grace period set for January 28, 2026.
Furthermore, “if full repayment of the interest on the current medium-term notes is made within the 30 trading days grace period, any default event is eliminated, or it is exempted through a bondholder meeting, it shall not constitute a default by the issuer on the current medium-term notes, and shall not trigger any related default liability.”
Public data shows that currently, Vanke has 13 outstanding domestic corporate bonds and medium-term notes with a total outstanding balance of 20.316 billion yuan. Vanke is due to repay 10 billion yuan of domestic debts between April and July 2026.
According to a report by Bloomberg citing sources familiar with the matter on December 12th, Vanke had lost support from the Chinese Communist Party in November and announced that a default was inevitable. At the same time, the largest state-owned shareholder of Vanke, Shenzhen Metro Group, in an investor announcement released on November 2nd, set a clear upper limit on future financing for Vanke for the first time and also requested Vanke to provide loan collaterals, including collateral for the already withdrawn 2.8 billion USD loan.
International rating agency Fitch Ratings had already placed Vanke on negative credit watch in early December this year, citing liquidity concerns and the possibility of inadequate liquidity to repay the relevant bonds on the original maturity date.
Leading multinational investment bank Goldman Sachs stated in a recent research report that without broader funding support, asset disposals, and refinancing plans, Vanke is likely to have to opt for a market-driven comprehensive debt restructuring.