Yahoo Finance·2025-12-31 04:37Company Overview - China Vanke, a state-backed property developer, narrowly avoided defaulting on a 2 billion yuan ($284 million) bond as the slow recovery in China's property market continues [1] - The company is also seeking to delay repayment of another 3.7 billion yuan ($530 million) of onshore debt due on December 28, with bondholders agreeing to extend the deadline to February [1] Industry Context - Chinese property developers are struggling to recover from a downturn that began years ago, despite government policies aimed at reviving the industry [2] - Weak investment and declining housing prices have undermined investor confidence, impacting the broader economy as many homeowners face significant losses on their properties [2] - The property market, once a major driver of prosperity, is now a burden on the economy [2] Financial Performance - Vanke's revenue fell by 27% year-on-year in the latest July-September quarter, and several of its onshore bonds were suspended from trading due to price declines [3] - The company owes more than $50 billion, significantly less than the over $300 billion debt of China Evergrande, which defaulted in 2021 [4] Market Conditions - The property sector in China remains in a prolonged downturn, with home prices dropping by 20% or more from their peak in 2021 [5] - New home sales fell by 11.2% in value year-on-year in the first 11 months of 2025, and property investments decreased nearly 16% from the previous year [6] - The ongoing decline in the property market poses significant risks to China's transition to a domestically demand-driven growth model [7]