China Vanke’s Hong Kong-listed shares fell over 8% on Friday following reports that its CEO, Zhu Jiusheng, has been detained by authorities.
A Shenzhen government task force has taken control of the state-backed developer’s operations, with reports suggesting a possible government takeover and restructuring.Vanke is grappling with a deepening bond selloff, as concerns grow over its mounting debt obligations and whether government intervention will be enough to stabilize the crisis.Once a key player in China’s property market, Vanke’s financial troubles surfaced last year when it sought to extend debt maturities due to declining sales. In 2023, it ranked second in sales value, but fell to fifth place in 2024 as monthly sales dipped below break-even.
The detention of its CEO may further shake investor and homebuyer confidence in China’s struggling real estate market.
The sector, once a quarter of China’s economy, has faced a severe debt crisis since 2021, leading to corporate defaults and unfinished projects.
This article was written by Eamonn Sheridan at www.forexlive.com. Read More Details
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