China’s Last ‘Too-Big-to-Fail’ Housing Giant Loses State Support
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000China’s Property Crisis:Vanke’s mounting problems are raising alarms about a $50 billion debt pile. Residential buildings under construction at China Vanke's Langshi Flower Language development in Shanghai.The bombshell hit on a late Sunday afternoon.China Vanke Co., the last big survivor of the country’s yearslong property crunch, sent investors an innocuous-looking announcement about a $3.1 billion loan agreement with a state-owned shareholder. But the Nov. 2 statement contained a twist: Shenzhen Metro Group Co., which had given unwavering support to the developer for nearly two years, now set a cap on any further financing. It also demanded that Vanke stump up collateral for its loans — including for the $2.8 billion already drawn down.