China Vanke said it had plans amid short-term liquidity pressures. By Reuters

claire jim

HONG KONG (Reuters) – State-backed property developer China Vanke said it was facing near-term liquidity pressures and operational challenges, but added that it had prepared “a series of plans” to stabilize its business and reduce debt.

Vanke said in a document summarizing comments the company made at a meeting with analysts on Sunday that it had the support of Shenzhen’s state-run asset regulator and its largest shareholder, state-owned Shenzhen Metro, after reporting on its situation.

Investors have been selling Vanke’s stocks and bonds over the past few weeks due to liquidity concerns, prompting a rare central government directive to support the Shenzhen-based company.

Moreover, S&P last week became the last of the major credit rating firms to strip its investment grade status, with the developer confirming Chinese media reports that an executive based in the northeastern city of Jinan had been taken into police custody on unspecified charges. inspection.

At a Sunday meeting hosted by Chairman Yu Liang and CEO Zhu Jiusheng, the developer said the Jinan City Political and Legal Affairs Committee had told it that the investigation into the executive was about personal matters and had nothing to do with Vanke.

Vanke also said he had filed a defamation lawsuit against a business partner who accused him of managerial financial misconduct, including personal gain from the company.

Vanke’s Hong Kong shares rose 1% on Monday morning, while its Shenzhen shares rose more than 2%.

The company promised at Sunday’s meeting that it would complete the project and deliver the apartments on time.

Vanke said last month it was aiming to boost cash flow by cutting debt by 100 billion yuan ($13.82 billion) over the next two years, and the Shenzhen state-owned asset regulator said it was working with several state-owned enterprises to help with cash flow. Yes.

($1 = 7.2382 Yuan)