On May 13th, 2026, China Vanke Co., Ltd. (Vanke) announced that its major shareholder, Shenzhen Metro Group, has once again loaned 25 billion yuan to Vanke. This loan is intended to repay the principal and interest of the bonds issued by Vanke in the public market. The total amount of funds loaned by Shenzhen Metro Group to Vanke has now reached 22 billion yuan.
Vanke issued a notice titled “Announcement on Shenzhen Metro Group Providing 25 Billion Yuan Shareholder Loan to the Company and the Company Providing Guarantee and Routine Related Transactions” on the 13th. The announcement stated, “According to the Framework Agreement, Shenzhen Metro Group provided a loan limit of up to 25 billion yuan to the company from January 1, 2026 to December 31, 2026.” It further mentioned that “as of now, the actual amount borrowed under this loan limit is 23.59 billion yuan.”
In explaining the purpose of the loan, the announcement stated, “The funds are used to repay the company’s bonds issued in the public market, including the principal and interest, as well as the designated loan interest agreed upon by Shenzhen Metro Group. Without the written consent of Shenzhen Metro Group, the company is not allowed to divert the loan for other purposes, and Shenzhen Metro Group has the right to supervise the use of the funds.”
Shenzhen Metro Group, a state-owned enterprise formally known as Shenzhen Metro Group Co., Ltd., holds a 27.18% stake in Vanke, making it the largest shareholder of the company, as indicated in Vanke’s announcement.
Furthermore, in a supplementary agreement and routine related transaction notice released by Vanke on the same day, it was revealed that the total amount of loans provided to Vanke by Shenzhen Metro Group has reached 220 billion yuan.
As a leading real estate enterprise in China, Vanke is currently facing challenging circumstances.
According to a report by China Real Estate News on May 12th, data shows that Vanke’s public debt due in 2026 amounts to 146.8 billion yuan, with 108 billion yuan already extended. The remaining amount to be dealt with is still significant, and another peak debt repayment will occur in July. As of the end of the first quarter of 2026, Vanke’s monetary funds amounted to 604.9 billion yuan, showing a continuous decline from the end of the previous year. The total interest-bearing debt remains high, indicating that Vanke’s debt pressure is far from being relieved.
Facing financial and debt pressures, Vanke has been pushing for the extension of four medium-term notes cases this year, including “22 Vanke MTN004,” “22 Vanke MTN005,” “23 Vanke MTN001,” and “23 Vanke MTN002,” totaling 9.7 billion yuan in principal.
Simultaneously, Vanke is seeking to raise funds through the sale of its assets. A report by Jiemian News on May 12th indicated that in the first quarter, Vanke sold multiple assets. On the evening of April 29th, Vanke announced that its wholly-owned subsidiary plans to transfer approximately 99.4130% equity interest in Huan Shan Group Co., Ltd. through public listing, with a corresponding amount of 3.27 billion yuan.
According to Vanke’s financial report, in the full year of 2025, Vanke achieved an operating income of 233.43 billion yuan, a 32.0% year-on-year decrease; and a net loss of approximately 88.56 billion yuan, nearly an 80% increase in losses compared to 2024. In the first quarter of this year, Vanke’s operating income was 289.28 billion yuan, down 23.86% year-on-year, with a net loss of 5.52 billion yuan.
As of the close of trading on May 12th, Vanke’s A-shares were priced at 4.1 yuan per share, a slight increase of 0.24%.