Vanke's woes thrust China's property crisis back into spotlight

China's property market is bracing itself for a worsening crisis at state-backed China Vanke, as the builder struggles to convince investors it can avoid default in the months ahead without clearer signs of government support.

- 

Once China's largest developer and now a bellwether for the nation's struggles to staunch broader property woes, Vanke plunged in credit markets this week.

Its dollar bond due in 2027 declined further on Nov 26 after sliding a record 12 US cents the previous day. It last traded at a distressed level below 44 US cents, the lowest since January.

Its onshore bonds extended declines, with one bond falling more than 20 per cent, triggering trading suspension by the Shenzhen Stock Exchange.

Several other onshore bonds from Vanke also fell more than 10 per cent, including one due in March 2027.

Vanke's woes spotlight the broader challenges facing policymakers as they balance efforts to revive a housing market stung by record builder defaults while trying to avoid getting mired in rescuing individual firms.