On November 3, 2025, Vanke Corporation Limited (Vanke) revealed that it had signed an agreement with its major shareholder Shenzhen Investment Holdings Co., Ltd. (Shenzhen Investment) for a 220 billion yuan loan, and at the same time, Vanke will provide mortgage and pledge guarantees for the actual borrowing.
According to the announcement titled “Announcement on Shareholder Loans Provided by Shenzhen Investment to the Company and Security Provided by the Company and Routine Related Transactions” released by Vanke on the 3rd, on November 2, Vanke and Shenzhen Investment agreed that from 2025 to the date of Vanke’s 2025 annual general meeting, Shenzhen Investment will provide Vanke with a loan amount not exceeding 220 billion yuan, and Vanke will provide mortgage/pledge guarantees for the actual borrowing.
As of the announcement date, Shenzhen Investment had provided Vanke with a total contract amount of 203.73 billion yuan in unsecured/secured loan agreement, with an actual withdrawn amount of 197.1 billion yuan. Vanke’s remaining amount available for withdrawal is 22.9 billion yuan, and the total principal and interest of the loan are expected not to exceed 236.91 billion yuan.
Reported by The Paper, Shenzhen Investment has provided a total of 291.3 billion yuan in shareholder loans to Vanke since the beginning of the year, with some of the loans having situations such as “no collateral/pledge provided” or “collateral provided but subsequent enforcement is not possible or partially enforceable.” The agreement signed by both parties this time requires Vanke to provide credit enhancement arrangements for the 220 billion yuan shareholder loan concerning the aforementioned situations, and Vanke will provide mortgage/pledge guarantees for the actual borrowing.
The announcement indicated that the loan will be used to repay the bonds issued by Vanke in the public market and the designated loan interest agreed upon by Shenzhen Investment. Without written consent from Shenzhen Investment, the company cannot divert the loan for other purposes, and Shenzhen Investment has the right to supervise the use of funds.
As a leading real estate enterprise in China, Vanke’s performance has been particularly bleak this year. According to the latest financial report titled “Third Quarter Report 2025” released by Vanke on October 31, the company achieved an operating revenue of 560.7 billion yuan in the third quarter, a year-on-year decrease of 27.3%; the net loss attributable to shareholders of the listed company was 160.7 billion yuan, with a loss amount expanding by 98% year-on-year.
Overall, in the first three quarters of this year, Vanke achieved an operating revenue of 1613.9 billion yuan, a year-on-year decrease of 26.61%; and a net loss of 280.2 billion yuan. This shows that the single-quarter loss in the third quarter for Vanke has exceeded the overall loss in the first half of the year.
According to the official account “Alpha Factory” under Beijing Kaijin Alpha Technology Co., Ltd. on November 3, the profit-making ability of Vanke’s real estate development business has sharply deteriorated. The overall pre-tax gross profit margin is 0.7%, while the post-tax gross profit margin for real estate development business is -10.5%, indicating that Vanke’s core business is actually operating at a loss. At the same time, as performance continues to decline, Vanke’s financial situation is becoming increasingly tense. As of September 30, 2025, the group’s total assets amounted to 11.366 trillion yuan, a decrease of 11.64% from the end of the previous year; the equity attributable to shareholders of the listed company was 175.756 billion yuan, a 13.28% decrease. Vanke’s total interest-bearing debt amounted to 3629.3 billion yuan, with an asset-liability ratio of 73.5%. Although it decreased by 0.1 percentage point from the previous year, the debt level remains high. With monetary funds amounting to 656.8 billion yuan, the company faces significant liquidity pressure relative to its substantial debt.
Vanke Corporation Limited was established in May 1984, with its headquarters located in Shenzhen, Guangdong. Its business scope includes real estate development, import and export business, among others.
Shenzhen Investment was established on July 31, 1998, and is a large state-owned enterprise directly managed by the State-owned Assets Supervision and Administration Commission of Shenzhen. In 2017, Shenzhen Investment officially became the largest shareholder of Vanke, holding a 27.18% equity stake in the company.