China has another real estate company on the brink of bankruptcy.

China Vanke, the real estate company on the verge of bankruptcy in China, has unexpectedly received strong support from authorities in its home city of Shenzhen.

In discussions with financial companies, the Shenzhen State-owned Assets Supervision and Administration Commission stated that it had confidence in Vanke and possessed sufficient cash and financial instruments.

State-owned Metro Group, Vanke's largest shareholder, also stated that it has no plans to reduce its stake and is ready to purchase the company's bonds at an appropriate time.

These statements are seen as contrasting with China's previous moves regarding Evergrande and Country Garden.

China Vanke, the real estate company on the verge of bankruptcy in China, has unexpectedly received strong support from local governments.

China Vanke unexpectedly received strong support from authorities in its hometown of Shenzhen (Photo: CNBC).

At a time when two of the country's largest real estate companies were in trouble, China offered almost no support to restore confidence in the market. To date, both Evergrande and Country Garden have declared bankruptcy.

China's real estate sector has entered its second year of difficulties, and authorities at both the central and local levels are expressing urgency in preventing negative impacts from the volatility in a sector that accounts for 25% of economic output.

In a statement following the meeting, Vanke said it was confident it would repay its domestic and foreign debt on time and that the market did not need to worry about it.

However, it remains unclear whether this will be a turning point for the Chinese real estate market. Chinese support, channeled through the Shenzhen city government, helped Vanke overcome its financial difficulties.

Currently, offering Vanke a "lifeline" could at least help mitigate the risk of another real estate giant collapsing. This is especially true as China grapples with the problems of Country Garden, Evergrande, and a host of smaller real estate developers.

Source: https://dantri.com.vn/bat-dong-san/trung-quoc-lai-co-them-mot-cong-ty-bat-dong-san-tren-bo-vuc-pha-san-20231108015022042.htm