The financial stability of Chinese developer Vanke has come under scrutiny after a series of events highlighting its challenges. S&P Global downgraded Vanke's credit rating to BBB+ and placed it on 'credit watch negative' due to concerns over its liquidity and the confidence of homebuyers. This move reflects wider apprehensions about the real estate sector in China, as even state-backed entities like Vanke, which is partly owned by the Shenzhen Metro, are not immune to crises. The situation worsened when Beijing police took 'criminal coercive measures' against Zhongzhi employees, weeks after the shadow banking giant's bankruptcy application was accepted. Additionally, a rare directive from Beijing aimed at assisting Vanke in overcoming its liquidity crisis has led to complications, with lenders scrambling for collateral.
Chinese developer Vanke's credit pursuit clouded by clamour for collateral https://t.co/uAfxeKORfe https://t.co/SlBrShNbuP
⚠️ ANALYSIS-CHINESE DEVELOPER VANKE'S CREDIT PURSUIT CLOUDED BY CLAMOUR FOR COLLATERAL Full Story → https://t.co/69mtdlAUhk A rare Beijing directive to help Vanke beat a liquidity crisis has left lenders scrabbling for the assets that the state-backed developer has proposed… https://t.co/AO2soWxFJc
S&P Global put China #Vanke's BBB+ score on "credit watch negative" from a stable outlook previously. https://t.co/qaH8BEJJbk
Police in Beijing said they're recovering ‘stolen goods’ as they take ‘criminal coercive measures’ against some Zhongzhi employees – Bloomberg: ‘weeks after a Beijing court accepted the shadow banking giant’s bankruptcy application.’ https://t.co/MvKbde2cgx
"The downgrade of Vanke, which is partly owned by the Shenzhen Metro, shows that even a developer with substantial state backing is not immune to a crisis of confidence among ordinary Chinese homebuyers" https://t.co/y3K66LvwjU https://t.co/qMNNf2pdrO