Core Viewpoint - Vanke has pledged all of its 57.16% stake in Wanwu Cloud to its largest shareholder, Shenzhen Metro Group, as collateral for a loan framework of 22 billion yuan, raising concerns about liquidity and the future independence of Wanwu Cloud [1][3][5]. Group 1: Pledge and Loan Details - Vanke pledged 15.32 million shares of Wanwu Cloud, accounting for approximately 1.33% of the total issued share capital, to secure a loan from Shenzhen Metro Group [1]. - The loan framework agreement allows Shenzhen Metro Group to provide up to 22 billion yuan for Vanke to repay public market bond principal and interest [4]. - The collateral requirements include a pledge rate of 60%-70% for operating real estate and stocks, and 50%-60% for non-listed company equity [4]. Group 2: Financial Impact and Market Reaction - Vanke has completed four rounds of pledging its stake in Wanwu Cloud since February 2025, with the total pledged shares covering the entire 57.16% stake [5][6]. - Following the announcement of the pledges and other financial difficulties, Vanke's bonds experienced significant declines, with some bonds suspended from trading due to a drop of over 30% [6][7]. - Vanke reported a net loss of 28.02 billion yuan for the first three quarters of the year, with total liabilities reaching 362.93 billion yuan and an asset-liability ratio of 73.5% [7]. Group 3: Wanwu Cloud's Position - Despite Vanke's challenges, Wanwu Cloud has shown stable performance, achieving a revenue of 18.14 billion yuan in the first half of 2025, a 3.1% increase year-on-year [8]. - Wanwu Cloud's core net profit rose by 10.8% to 1.32 billion yuan, with a significant portion of revenue coming from circular business [8]. - The close relationship with Vanke raises concerns about Wanwu Cloud's future, as the full pledge of shares may limit its capital operation space and potential changes in ownership structure if Vanke fails to repay the loans [8].

Summary of Conference Call on China Property Market Industry Overview - The conference call focused on the **China Property** sector, specifically the performance of major property developers in November 2025 and the outlook for early 2026 [1][2][4]. Key Points Sales Performance - **Contracted Sales Decline**: Major developers recorded an average decline of **42% year-on-year (y-y)** in contracted sales for November 2025, with a year-to-date (YTD) decline of **23% y-y** [1][2]. - **Top Developers' Performance**: The top 50 and top 100 developers saw declines of **35%** and **36% y-y**, respectively, with YTD sales declines of **18%** and **19%** [2]. - **Divergence in Performance**: State-owned enterprises (SOEs) outperformed private-owned enterprises (POEs), with SOEs like Jinmao, CR Land, Poly, and COLI showing milder declines of **0%**, **-11%**, **-25%**, and **-26%** y-y, while some POEs like Agile and Midea RE experienced declines exceeding **55%** y-y [3]. Market Sentiment and Outlook - **Weak Buyer Sentiment**: The market sentiment remains weak, exacerbated by high listing volumes and lower secondary listing prices. A survey indicated that sentiment in tier-1 cities has worsened significantly [4]. - **Policy Outlook**: The expectation is that meaningful housing policy changes will remain muted in the coming months, with potential mortgage interest subsidies possibly rolling out in late Q2 or Q3 2026 if home price declines spread to tier-2 cities [4]. Investment Recommendations - **Defensive Strategy**: Analysts recommend a defensive and selective investment approach, suggesting accumulation of quality SOEs with potential alpha opportunities for 2026. Specific recommendations include CR Land (1109.HK) and C&D (1908.HK) for their attractive dividend yields, and Seazen (601155.SS) for its robust mall rental and private REIT divestment [5]. Additional Insights - **Sales Data**: The sales data indicates a significant contraction in the property market, with the median sales decline for SOEs at **-26%** and for POEs at **-45%** [9]. - **Future Risks**: Risks to the upside include stronger-than-expected contract sales and faster project launches, while downside risks involve slower sales growth and margin compression [19][20]. This summary encapsulates the critical insights from the conference call regarding the current state and future outlook of the China property market, highlighting the significant challenges faced by developers and the cautious investment strategies recommended by analysts.

1 December 2025 | 4:20PM CST Equity Research CHINA VANKE (000002.SZ, 2202.HK) Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to www.gs.com/r ...

格隆汇12月2日｜深交所："21万科06"(149568)盘中成交价较前收盘价首次下跌达到或超过20%，本所自 今日09时49分41秒起对该债券实施临时停牌，于10时19分42秒复牌。 ...

Group 1 - The stock "21 Vanke 04" experienced a significant increase of nearly 220%, leading to a temporary suspension of trading [1]

深交所12月2日公告，"21万科04"（149478）盘中成交价较前收盘价首次下跌达到或超过20%，根据 《深圳证券交易所债券交易规则》和《关于对债券匹配成交实施盘中临时停牌有关事项的通知》等有关 规定，本所自今日09时32分34秒起对该债券实施临时停牌，于10时02分35秒复牌。 ...

Core Viewpoint - The Shenzhen Stock Exchange announced a temporary suspension of the bond "21 Vanke 04" (149478) after its trading price fell by 20% or more compared to the previous closing price [1] Group 1 - The bond "21 Vanke 04" experienced a significant price drop, marking a decline of 20% or more [1] - The temporary suspension of trading was implemented at 09:32:34 and resumed at 10:02:35 [1]

深圳证券交易所公告，"21万科06"（149568）盘中成交价较前收盘价首次下跌达到或超过20%，根据 《深圳证券交易所债券交易规则》和《关于对债券匹配成交实施盘中临时停牌有关事项的通知》等有关 规定，本所自今日09时49分41秒起对该债券实施临时停牌，于10时19分42秒复牌。 ...

格隆汇12月2日｜深交所："21万科04"(149478)盘中成交价较前收盘价首次下跌达到或超过20%，本所自 今日09时32分34秒起对该债券实施临时停牌，于10时02分35秒复牌。 ...

Core Viewpoint - The Shenzhen Stock Exchange announced a temporary suspension of the bond "21 Vanke 02" (149358) after its trading price fell by 20% or more compared to the previous closing price [1] Group 1 - The bond "21 Vanke 02" experienced a significant price drop, triggering a temporary trading halt [1] - The temporary suspension began at 09:32:38 and was lifted at 10:02:39 [1] - The action was taken in accordance with the Shenzhen Stock Exchange's bond trading rules and related notifications regarding temporary suspensions [1]