Vanke progresses on CNY 4.2bn loan from Shenzhen Metro

China Vanke (SZSE:000002) has announced further progress on the previously disclosed CNY 4.2 billion loan from its major shareholder, Shenzhen Metro Group. The company has officially signed the loan agreement and received the funds, with initial credit enhancement provided by three Vanke subsidiaries. To complete the credit enhancement arrangements, Vanke is scheduled to convene a shareholders' meeting to seek approval for pledging shares of China Vanke Service, capped at CNY 6 billion, as collateral. If the share pledge isn't completed, Shenzhen Metro can ask for immediate repayment or other collateral.