Bonds of Chinese state-backed property developer Vanke (2202) tumbled on Wednesday, after media hints of a possible restructuring of its debt reignited doubts about further government support for the crisis-hit sector. Several yuan bonds of Vanke, a household name with many projects in China’s biggest cities, slid more than 20 percent, with some down more than 30 percent, triggering suspensions of the company’s seven exchange-traded bonds by the Shenzhen Stock Exchange. Vanke’s yuan bond due in March 2027 traded at 55 per 100 par value by 0555 GMT, down from 80 at the open, for a plunge of 35 percent. On Tuesday, financial publication Octus said Beijing gave preliminary guidance to the government of Shenzhen, where state-affiliated Vanke is based, to consider a “market-oriented approach” for dealing with the developer’s debt. The term was a euphemism for restructuring, Octus cited the source of its report as saying. Two people with knowledge of the situation told Reuters that state-owned China International Capital Corporation (CICC) had been brought in to assess Vanke’s debt.

Full report : Bonds of Chinese state-backed property developer Vanke tumbled on Wednesday, after media hints of a possible restructuring of its debt.