Vanke bond collapse after repayment delay triggers broad concern over China property sector

Between November 26 and 28, 2025, China’s major property developer Vanke announced it would delay repayment of a 2 billion-yuan on-shore bond due December 15, prompting an abrupt plunge in several of its bonds and trading suspensions on the Shenzhen Stock Exchange. Once considered a stable, state-backed developer, Vanke’s move shattered investor confidence that state association guaranteed credit safety. In response, several international rating agencies downgraded Vanke, warning of heightened refinancing risk.

Analysts argue the repayment delay could trigger contagion across China’s fragile real estate sector, undermine market sentiment, and carry systemic repercussions for banks, trust funds and overseas investors—raising doubts about the broader soundness of China’s property debt structure and its knock-on effects on global capital flows.