China’s leading real estate company Vanke Group announced on July 3 that its largest shareholder, Shenzhen Metro Group Co., Ltd. (referred to as “Shenzhen Metro Group”), will once again provide the company with a loan of up to 6.249 billion yuan. Currently, Vanke has applied for a total loan of approximately 21.1 billion yuan from Shenzhen Metro Group.
This new funding from Vanke is primarily intended to repay the principal and interest of the bonds issued by Vanke in the public market. The loan has a term of no more than 3 years and an annual interest rate of 2.34%.
Shenzhen Metro Group has agreed to extend the previous 890 million yuan loan. At the same time, Vanke needs to provide equity pledge of 1.551 billion yuan for existing loans to Wanwu Yunkong Space Technology Co., Ltd.
Shenzhen Metro Group currently holds a 27.18% stake in Vanke, making it its largest shareholder. Since the beginning of 2025, Shenzhen Metro Group’s Party Committee Secretary and Chairman Xin Jie has also served as the Chairman of the Vanke Board of Directors, and Shenzhen Metro Group has provided substantial support to Vanke in various ways.
Public information shows that in addition to the 62.49 billion yuan loan announced this time, Shenzhen Metro Group has also provided loans of 2.8 billion yuan and 4.2 billion yuan in February, 3.3 billion yuan in April, 1.552 billion yuan in May, and 3 billion yuan in June in 2025. As of now, Vanke has applied for a total loan of approximately 211.01 billion yuan from Shenzhen Metro Group.
At the annual shareholders meeting held on June 27, Vanke Chairman Xin Jie admitted that the company faced significant challenges in its overall operations in 2024. However, he stated that with policy support and the backing of major shareholders, Vanke is accelerating its internal reform efforts to mitigate various risks with development as the focus.
Vanke is one of the largest real estate developers in China, with Shenzhen Metro Group becoming its largest shareholder since 2017. Shenzhen Metro Group is under the supervision of the Shenzhen State-owned Assets Supervision and Administration Commission and has been called the “most profitable metro company.”
Despite Shenzhen Metro Group’s substantial financial support, the huge debts of Vanke seem insurmountable.
2025 is a peak period for Vanke’s debt repayment. As of March 31, 2025, Vanke’s total liabilities amounted to 914.065 billion yuan.
According to data from Centaline Property, as of the end of 2024, Vanke’s interest-bearing debt totaled 361.28 billion yuan, with short-term debt accounting for over 40%.
Since the beginning of this year, Vanke has repaid multiple domestic and foreign bonds, with total repayments reaching 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.
Wind data shows that from June to July, Vanke still has four debts outstanding, totaling over 7.6 billion yuan.
Despite the strong support from its major shareholder Shenzhen Metro Group, Vanke itself is facing challenges. In 2024, the group incurred a loss of 33.46 billion yuan, and in the first quarter of this year, it recorded a substantial loss of 6.246 billion yuan.