China Vanke wins 11.5b yuan loan, shares rise

Cici Cao

China Vanke (2202) shares saw a 2.52 percent increase in Hong Kong after acquiring a loan of 11.5 billion yuan (HK$12.6 billion).

The loan comes from Ping An Bank, with a total loan principal of 3.5 billion yuan and a 7.98 billion yuan loan from a syndicate led by the Bank of Communications (3328).

Its peer Country Garden (2007) is seeking to extend the grace period for its domestic bond repayments by six months to March 2025, mainland media reported.

The debt-laden company said the industry is still full of challenges and its sales have continued to face pressure, affected by the weakening market consensus and weak demand.

It has suspended trading of its shares on the Hong Kong stock exchange for five months.

In other news, China Overseas Land & Investment (0688) said its contracted property sales fell by 2 percent to 18.46 billion yuan in August from the previous month.

Its corresponding sales area amounted to 695,500 square meters, a decline of 3.3 percent over the previous year.

The company reached more than 180 billion yuan of accumulated contracted property sales and 6.68 million sq m of corresponding sales area over the past eight months, with decreases of 14.7 percent and 28.4 percent respectively over the same period last year.

And Sunac (1918) said it achieved contracted sales worth 7.35 billion yuan in August and its contracted sales area amounted to approximately 141,000 sq m. As of the end of August, the group said its total contracted sales amounted to approximately 35.04 billion yuan and its total contracted sales area was 1.6 million sq m.