China Vanke crisis: Creditors vote as countdown to default deadline enters critical hours

Key Highlights

• The result is expected shortly after markets close.
• Earlier this month, the company failed to secure creditor approval for an initial extension plan, leading to a revised proposal that includes interest payments and a request to lengthen the grace period from five to 30 trading days.
• Vanke has also held meetings with insurers and banks in Shenzhen as liquidity pressures have intensified. More from World 'All political parties should compete': Motion in UK parliament calls for 'free, fair' polls in Bangladesh Lying on laps and more...: What latest Epstein file photos reveal about ex-Prince AndrewMarket response and wider implicationsAhead of the decision, Vanke’s shares have shown modest movement, edging up slightly in Hong Kong, while onshore trading has remained sensitive.
• Credit ratings agencies have already downgraded the developer’s debt to levels associated with severe stress.
• A default by Vanke, once widely viewed as effectively state-backed, would mark a significant escalation in China’s property crisis, which has been characterised by falling home sales, price weakness in major cities, and a series of defaults and restructurings among developers. If bondholders reject the extension and the payment is not made within the grace period, creditors could formally declare a default, likely pushing the company towards restructuring.