China Vanke seeks first extension on $282-M onshore bond payment

China Vanke will seek bondholder approval to delay the repayment of a two billion yuan ($282.6 million) onshore bond, a filing late on Wednesday showed, a move that could trigger a new wave of anxiety in both financial and property markets.

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A public bond extension would be the first for the state-backed property developer, a household name with many projects in China's biggest cities.

A debt restructuring by Vanke with 364.3 billion yuan of interest-bearing liabilities, could also potentially dwarf defaults by privately owned peers Evergrande and Country Garden this decade.

Vanke did not immediately respond to Reuters' requests for comment.

The bond in question will mature on Dec. 15, and the bondholder meeting is scheduled for Dec. 10. No details of the extension terms were provided in the filing.

Vanke has another yuan bond worth 3.7 billion yuan due on Dec. 28. Its next dollar bond maturity is in November 2027.

Its bonds tumbled earlier on Wednesday, after media hints of a possible restructuring of its debt reignited doubts about further government support for the crisis-hit sector.

Several of Vanke's yuan bonds slid more than 20%, with some down more than 30%, triggering suspensions of the company's seven exchange-traded bonds by the Shenzhen Stock Exchange.