China Vanke Faces Default Risk After Failed Bond Extension

China Vanke's request to extend a bond payment due on Monday was rejected by bondholders, intensifying default risks and renewing concerns over the property sector. The developer has a five-day grace period to pay 2 billion yuan. The situation echoes past defaults by major Chinese developers.

China Vanke's attempt to secure a bond payment extension was denied, increasing the risk of default for the developer and highlighting ongoing issues in China's property sector.

With a five-day grace period to address a 2 billion yuan bond due, Vanke's struggle echoes the financial difficulties seen across the industry, sparking broader economic concerns.

The company's financial sustainability is under scrutiny after a recent downgrade by S&P Global, despite Vanke's state-backed partial ownership by Shenzhen Metro Group.

(With inputs from agencies.)