China Vanke has been thrown a lifeline by state authorities, a rare show of support that signals the developer may be too big to fail even after dozens of property firms defaulted amid China’s punishing housing slump.
As part of an overhaul unveiled late Monday, Vanke’s two top veteran executives stepped down after the company warned of a record $6.2 billion loss. An official from Shenzhen Metro Group, its largest state shareholder, will take over as chair. Shortly after the surprise announcement, local and state governments in Vanke’s home base of Shenzhen vowed to "proactively support” its operations through state media.
Vanke’s bonds soared as investors bet that the embattled developer will avoid the fate of China Evergrande Group and Country Garden Holdings that defaulted in recent years with little help from Beijing or other government entities.
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