China Vanke says well prepared to resolve liquidity problems, denies travel ban imposed on officials

China Vanke has two offshore bonds totalling 5.6 billion yuan equivalent and 7.3 billion yuan of onshore bonds due or puttable this year, according to S&P Global

The company’s credit rating was downgraded by S&P Global Ratings last week, which came on the heels of similar cuts by Moody’s and Fitch Ratings earlier in the month

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Signage at China Vanke Co’s Qibao Vanke Plaza in Shanghai, China. Photo: Bloomberg

Published: 1:41pm, 15 Apr 2024Updated: 3:11pm, 15 Apr 2024

Embattled China Vanke said it is well-prepared to resolve its liquidity problems and operational difficulties, rejecting allegations the company’s majority shareholders were diverting its assets. It also denied that travel restrictions were imposed on its key managerial staff.

While dismissing default concerns, the developer told investors at a meeting on Sunday that it had plans to stabilise operations and cut its debt load and “properly resolve these short-term pressures”.

The company will also “make full use of existing channels and tools” for raising funds and it is fully supported by financial institutions in these efforts, according to a filing on the Shenzhen Stock Exchange.

Shares of Vanke rose as much as 2.3 per cent in Hong Kong in early deals, outperforming the broader market which slipped on geopolitical concerns.

Zhu Jiusheng, President and Chief Executive Officer, China Vanke Co., Ltd., holds the China Vanke Co. Ltd. 2019 Interim Results Announcement at the JW Marriott Hotel, Admiralty. 21AUG19 SCMP / Roy Issa

Vanke’s Chairman Yu Liang and President Zhu Jiusheng said during the meeting that the company is confident about its plan to reduce its debt by 100 billion yuan (US$13.8 billion) by next year, and pledged timely delivery of homes to buyers, according to the filing.