By Li Gu and Clare Jim
Shanghai/Hong Kong (Reuters) -China Vanke’s Bonds who won on Monday after the state -supported developer redeemed its 2027 notes worth 1 billion yuan (137.68 million dollars) at the beginning of March.
The announcement of cities increased the confidence of investors to his ability to repay his short-term financial debt, including a 3 billion-yuan-onshore bond on Monday. In contrast to the redemption of the 2027 notes, the company is not obliged to disclose the repayment on Monday.
The concerns about the liquidity of Vanke have intensified this month because they have several impending deadlines for debts. It has a total of 3.4 billion US dollars this year.
A state media report at the beginning of this month claimed that the developer’s CEO had been arrested and could be subject to a takeover or reorganization. The report was deleted within a few hours after its publication.
In a registration on Friday, Vanke said that it would exercise its rights to redeem the Callable bond from 2027 in March.
Analysts said that investors had taken the early salvation as a sign that they had no problem to fulfill the more direct obligations.
“The announcement of the withdrawal of the last bond for the first quarter corresponds to the explanation that all bonds for the quarter are free of failure images,” said Yao Yu, founder of the credit company -Rating company.
Vanke’s May 2028 Onshore bond was 15% higher on Monday morning at 73 Yuan compared to a nominal value of 100 Yuan.
The offers for the bond in May 2025 also rose to $ 80.608 cents on the dollar of around $ 75.7 cents on Friday.
Some analysts say that a debt failure this year is inevitable without fresh liquidity support, since the monthly turnover from consanies drops to Break-Even level and difficulties are faced with the borrowing of banks and the disposal of assets. It fell to fifth place last year from the second in 2023.
The government in the southern city of Shenzhen, where Vanke has its headquarters, increases the meetings and the coordination with the local state companies to contain the debt risk and on assets, Reuters reported last week.
The developer has tried to sell a number of assets, including its shares in the Logistics platform GLP and the real estate management unit OneWo to facilitate liquidity pressure, says sources.
It is in advanced conversations to sell a controlling participation in VX Logistics at the Singapore Soouvergän Wealth Fund Gic, and a deal could be completed next month, said Reuters last week.
This month, all three global evaluation agencies have lowered the developer deeper into garbage, whereby the eroding financial flexibility and the uncertain sales prospects of 2025 were led.
($ 1 = 7.2634 Renminbi)