Chinese Regulators Urge Financial Support for China Vanke

Chinese regulators have reportedly convened meetings with financial institutions to address the challenges faced by state-backed property developer China Vanke.

Sources familiar with the matter revealed that regulators urged large banks to enhance financing support for Vanke while encouraging private debt holders to discuss maturity extension.The State Council, China’s cabinet, is reportedly coordinating efforts related to supporting China Vanke, signaling government intervention in addressing concerns within the property market.

The sources, speaking on condition of anonymity due to the sensitivity of the matter, emphasized the urgency for financial institutions to make swift progress in response to the regulator’s requests.While the specifics of when these requests were made remain undisclosed, one source outlined the directives given to financial institutions, including banks ensuring Vanke’s financing, insurers extending maturities for private debt, and all parties guaranteeing repayments of public bonds.

Source: Reuters