Regulators meets with China Vanke bondholders regarding extension plan: Bloomberg

Some bondholders of China Vanke (2202) expressed concern about the plan to delay bond payments during a discussion with Shenzhen officials on December 7, according to Bloomberg.

These bondholders were asked to comment on a proposal to extend the maturity of a 2 billion yuan (HK$2.2 billion) bond due on December 15 by one year, the report said.

A private equity investor warned that a Vanke default could trigger systemic risk, as this company is closely tied to Shenzhen.

The sources said that regulators are therefore urgently requiring bondholders to understand Vanke's current financial difficulties, stating that the existing extension plan offers little room for improvement. They said that although the meeting in Beijing lasted for over an hour, it left some investors feeling disappointed.