On November 11th, China Vanke Co., Ltd. (Vanke) announced that its largest shareholder, Shenzhen Metro Group Co., Ltd. (Shenzhen Metro Group), provided a loan of up to 1.666 billion yuan (RMB) to the company to repay bond principal and interest. Shenzhen Metro Group has provided Vanke with a total of 29.13 billion yuan in loans (excluding this latest loan).
In the announcement titled “Announcement of Shenzhen Metro Group Providing a Loan of Up to 1.666 Billion Yuan to the Company and Related Transactions” issued by Vanke on November 11th, it was stated that the 1.666 billion yuan loan provided by Shenzhen Metro Group is intended to repay the principal and interest of bonds issued by the company in the public market. The loan has a term not exceeding 3 years. Both parties agree that the loan can be repaid in advance; with the consent of the lender, an extension can be arranged. The loan interest rate is based on the 1-year loan market quotation rate (LPR) published by the National Interbank Funding Center on the previous working day before the withdrawal, minus 66 basis points, currently at 2.34%.
The announcement revealed that “Shenzhen Metro Group has provided a total of 29.13 billion yuan in loans to the company (excluding this latest loan).”
Vanke is a leading real estate enterprise in China. In the current environment of the continuous downturn in the Chinese real estate industry, Vanke’s performance this year has been particularly bleak. The latest performance report in Vanke’s “Third Quarter Report for 2025” released on October 31st showed that in the third quarter, operating income decreased by 27.3% year-on-year; attributable net loss to shareholders of the listed company was 16.07 billion yuan, an increase of 98% compared to the same period. In the first three quarters of this year, Vanke’s operating income decreased by 26.61% year-on-year, with a net loss of 28.02 billion yuan. This indicates that Vanke’s quarterly loss in the third quarter has exceeded the overall loss in the first half of the year.
China Vanke Co., Ltd. was established in May 1984 and is headquartered in Shenzhen, Guangdong. Its business scope includes real estate development, import and export business, and more.
Shenzhen Metro Group was founded on July 31, 1998, and is a large state-owned enterprise managed directly by the Shenzhen State-owned Assets Supervision and Administration Commission. In 2017, Shenzhen Metro Group officially became Vanke’s largest shareholder. As of now, Shenzhen Metro Group holds a 27.18% stake in Vanke.