China's financial regulators have asked some banks not to classify overdue loans to major Chinese property developer Vanke as bad debt and to extend repayment deadlines, according to multiple people familiar with the matter. The authorities, in informal window guidance aimed at helping Vanke avoid default, urged financial institutions to support the company and refrain from actions that would worsen its cash crunch, and asked some banks to temporarily hold off collecting interest owed by Vanke, the people said. Reuters could not confirm how many banks received the guidance, but the people said it mainly targeted large banks. No time frame has been set for how long the loans will stay unclassified as bad debt, and that will depend on conditions in the property market and future talks with Vanke, they said. Vanke's cash on hand has shrunk amid weak sales, and in 2025 it posted a record loss of 88.6 billion yuan; in the first half of 2026 it recorded a net loss of 1.495 billion yuan on revenue of 70.2 billion yuan, down 33 percent from a year earlier. One of the people said financial authorities are worried about the blow to market confidence and are trying to prevent a risk event at a property developer with strong ties to a state shareholder.
China Vanke Co Ltd Class ARegulators gave banks window guidance not to classify Vanke's overdue loans as bad debt and to extend repayment deadlines, easing its default risk.
