On August 5th, China’s real estate giant Vanke announced it had once again received a loan of 1.681 billion yuan from its largest shareholder, Shenzhen Metro Group. This marks the second capital injection within a week. Statistics show that Shenzhen Metro Group has provided Vanke with a total of 24.369 billion yuan in loans so far this year, becoming an important source of funding for the top-tier real estate company to sustain its operations. At the same time, Vanke is expected to incur a loss of 10 to 12 billion yuan in the first half of the year, highlighting the severe challenges facing the current real estate industry.
According to the announcement released by Vanke, the 1.681 billion yuan loan provided by Shenzhen Metro Group has a term not exceeding 3 years with an interest rate of 2.34%. This funding will be primarily used to repay the principal and interest of Vanke’s publicly-issued bonds, as well as designated loan interest agreed upon by the lenders.
It is noteworthy that this is the 8th shareholder loan Shenzhen Metro Group has provided to Vanke this year. Just on July 30th, Shenzhen Metro Group provided a 869 million yuan loan to Vanke, with less than a week gap between the two loans. Prior to this, on July 3rd, Shenzhen Metro Group also provided Vanke with the largest loan of within the year, amounting to 6.249 billion yuan.
Since Vanke held its 2024 annual shareholder meeting on June 27, 2025, Shenzhen Metro Group has provided multiple funding arrangements to Vanke in batches, including a new loan of 6.249 billion yuan, an extension loan of 890 million yuan, a new loan of 869 million yuan with asset pledged as collateral, and using Wanwu Cloud’s equity pledge for the existing loan of 1.551 billion yuan.
Currently, Shenzhen Metro Group holds a 27.18% stake in Vanke, making it the largest shareholder. Vanke stated in the announcement that the interest rate for this shareholder loan follows market principles, lower than the interest rates the company currently obtains from financial institutions, fully reflecting the support of the major shareholder for the company.
Despite receiving ongoing financial support from the major shareholder, the operational situation of Vanke remains bleak. According to the performance forecast issued on July 14 for the first half of 2025, Vanke is expected to incur a net loss of 10 to 12 billion yuan, further widening the losses compared to the same period last year. After deducting non-recurring gains and losses, the loss is further expanded to 9.5 to 11.5 billion yuan.
Data shows that Vanke’s sales revenue in the first half of the year was 69.1 billion yuan, with over 45,000 units delivered and a collection rate exceeding 100%. However, factors such as a sharp reduction in settlement scale, low gross profit margins, impairment of assets, and losses from bulk transactions continue to drag down overall operations, posing severe challenges.
Vanke admitted that the company is currently barely maintaining cash flow and debt repayment with repeated funding from the major shareholder Shenzhen Metro Group. Although Vanke has no overseas public debt maturing before 2027, it is still difficult to conceal its current financial difficulties. The company stated it will seek self-rescue through means such as “strategic focus” and “operational boost”.
As a leading company in the real estate industry, Vanke’s continuous losses and reliance on major shareholder funding reflect the systemic challenges facing the entire industry. Against the backdrop of current market supply-demand imbalances and lack of confidence in home buying, even large-scale and relatively resource-rich real estate companies find it challenging to stand alone.