Vanke boosts loan guarantees for subsidiaries amid ongoing financial support

China Vanke has issued several announcements detailing new and ongoing guarantees for its subsidiaries' bank loans. The company's board, under a mandate from the 2024 annual general meeting, has approved new guarantees within an authorized limit of RMB 150 bn for 2024-2025. This includes guarantees for two loans by Vanke Property (Hong Kong) Co., Ltd. and two loans by Vanke Real Estate (Hong Kong) Co., Ltd. totaling HK$50 bn, HK$29 bn, £90 m, and HK$21 bn, respectively. These guarantees are provided through various methods including joint liability, equity pledges, and asset mortgages by several Vanke subsidiaries.

Additionally, Vanke has provided a credit guarantee of up to RMB 731 m for its subsidiary Hainan Wanjun Management Services Co., Ltd. for its operational responsibilities. Hainan Wanjun’s other shareholder is providing a counter-guarantee of up to RMB 219 m based on its 30% equity stake. An existing guarantee for Shenzhen Boyu Apartment Rental Services Co., Ltd.'s bank loan of RMB 200 m from China Everbright Bank has also been extended for one year.

Following these latest actions, Vanke and its controlling subsidiaries' total external guarantee balance will increase to RMB 93.877 bn, representing 46.32% of the company’s net assets attributable to shareholders as of the end of 2024. The guarantees are considered manageable and align with the company's operational needs and corporate governance.