VNKA
📉 Vanke reported a staggering record annual loss of 40 billion yuan (nearly $7 billion USD) for 2024, its first full-year loss since its 1991 IPO, highlighting severe distress even in supposedly stable developers.
🧱 The company’s housing sales plummeted to their lowest level in a decade, significantly contributing to the massive financial loss and exceeding even the most pessimistic forecasts.
🆘 Despite government ties, Vanke required a bailout through loans from its main state-owned shareholder to meet debt obligations, underscoring the depth of China’s property crisis.
@bernardodegarcia:
“The magnitude of the problem became painfully clear a little over a month ago, on March 31st, 2025. Ah, we haven’t covered this news, although we did talk about it, but it’s not like we expect too much with China, okay? Ah, with Vanke, a developer considered more stable and with government ties, reported a record annual loss of 40 billion yuan, equivalent to a loss of almost 7 billion dollars. This was Vanke’s first full-year loss for 2024 since it went public in ’91 and already surpassed the most pessimistic forecasts the company itself had given in January, around 45 billion yuan, or 6 billion dollars in losses. For a company the size of Vanke, the developer’s executives… Moody’s predicted Vanke’s sales would drop by 30%. Recent figures place the decline much higher. I don’t know if we can access it, but anyway. The fact that a company like this reports such losses underscores how deep and widespread the crisis is. It’s affecting even those thought to be better protected because they are friends of the government. Vanke has seen its housing sales fall to their lowest level in a decade and has had to be rescued, at least temporarily, with loans from its main shareholder, a state-owned metro company, to meet its debt payments. I don’t know if you’re seeing that there’s a kind of house of cards here.”
Watch the exact part of the video where @bernardodegarcia talks about China Vanke Co., Ltd. here:
Watch the video on YouTube
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