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HONG KONG :State-backed property developer China Vanke said it is facing short-term liquidity pressure and operational difficulties, but added that it has prepared “a basket of plans” to stabilise its business and cut debt.
Vanke has the support of Shenzhen’s state asset regulator as well as its largest shareholder, state-owned Shenzhen Metro, after reporting its situation to them, it also said in a filing that summarised comments made by the company in a meeting with analysts on Sunday.
Investors have been selling off Vanke’s shares and bonds in the past few weeks on liquidity concerns, triggering a rare central government directive to help the Shenzhen-based company.
Adding to its woes, S&P last week became the last of the major credit rating firms to strip its investment grade status, and the developer confirmed Chinese media reports that an executive based in the northeastern city of Jinan had been taken away by police for an unspecified investigation.
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