China’s real estate giant Vanke Group Limited announced on the evening of June 6th that its largest shareholder, Shenzhen Metro Group, will provide a loan of up to 3 billion yuan to the company to repay old debts. This marks the fifth time this year that Shenzhen Metro Group, a state-owned enterprise under the Shenzhen State-owned Assets Supervision and Administration Commission, has provided financial support to Vanke.
According to the announcement, the loan carries an annual interest rate of 2.34% with a term not exceeding 36 months, and offers flexibility for early repayment and extension. In contrast to the previous two loans in April and May that were unsecured, in this round of lending, Shenzhen Metro Group retains the right to request collateral from Vanke. If collateral is requested, Vanke must follow the corresponding decision-making procedures according to the law.
This is the fifth time this year that Shenzhen Metro Group has come to the aid of Vanke. As the largest shareholder, Shenzhen Metro Group has been actively supporting Vanke since the company experienced a cash flow crisis.
In addition to the 3 billion yuan loan mentioned above, Shenzhen Metro Group provided shareholder loans to Vanke on February 10th, February 21st, April 29th, and May 14th, totaling nearly 15 billion yuan in aggregate.
Vanke is one of the largest real estate developers in China, and Shenzhen Metro Group became its largest shareholder in 2017. Shenzhen Metro Group, a subsidiary of the Shenzhen State-owned Assets Supervision and Administration Commission, has been dubbed the “most profitable metro company.”
Despite the significant financial support provided by Shenzhen Metro Group, Vanke still faces a daunting amount of debt. As of March 31, 2025, Vanke’s total liabilities amounted to 914.065 billion yuan.
According to data from the China Real Estate Research Association, as of the end of 2024, Vanke’s interest-bearing debts totaled 361.28 billion yuan, with short-term debts accounting for over 40%. Its cash and cash equivalents amounted to 88.16 billion yuan, with a quick ratio of only 0.56. After deducting regulatory funds, its liquidity further tightened.
In 2025, Vanke has already repaid several domestic and foreign bonds, totaling 9.89 billion yuan in the first quarter alone. In May and June, it continued to repay over 2 billion yuan in principal and interest. However, a report by China Chengxin International Credit Rating Co., Ltd. indicated that as of the end of May, Vanke still had 21.76 billion yuan in debt to be repaid within the year, facing significant repayment pressure.
According to Wind data, from June to July, Vanke still has four debts due, totaling over 7.6 billion yuan. Among them, the “Vanke 20” bond is due on June 18, requiring a payment of 1.2 billion yuan in principal and 131 million yuan in interest.
While Vanke has received strong support from its major shareholder, Shenzhen Metro Group, the latter is also facing its own challenges. The company recorded a loss of 33.46 billion yuan in 2024, and in the first quarter of this year, it incurred a massive loss of 6.246 billion yuan, a year-on-year decrease of 1625.63%.