Regulators ride in to plug Vanke's 50b yuan funding gap

Bloomberg

Chinese authorities are working on a proposal to help China Vanke (2202) plug a funding gap of about 50 billion yuan (HK$53.28 billion) this year, according to people familiar with the matter, highlighting the government support for the distressed developer.

Under the plan, regulators would allocate 20 billion yuan of special local government bond quota for the purchase of unsold properties and vacant land from Vanke, said the people, asking not to be identified discussing private information.

The money would enable the Shenzhen-based developer to pay public and private debt due this year, the people added.