Kathmandu. China is the world’s second-largest economic power. However, a crisis continues to push China back from its economic progress. China is struggling to get through this crisis. However, instead of decreasing, the challenges for China are increasing.
In fact, China’s real estate market has been in recession for the past 5 years. This recession is hindering China’s economic progress.
China’s real estate sector is currently going through its worst phase. The value of the property is decreasing and sales are falling. Developers are facing liquidity problems as the entire sector is deeply indebted. The situation is so dire now that you have to take a loan to pay off the debt.
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2025. The average house price in China fell by more than 5 percent over a period of 2026. While houses are being built in one city after another, buyers are disappearing. The government is actively working to address the problem, but the crisis is deepening.
After real estate companies Evergrande and Country Garden, China is now facing threats. China is facing mounting debt pressure and is facing difficulties in repaying bonds. Evergrande, China’s largest real estate company, is already nearly ruined after being pulled from the Hong Kong Stock Exchange.
China Vankke is currently grappling with deep financial problems. In recent times, it was considered the strongest real estate company. However, it is also in the debt trap. Vanke has recorded a loss of about 82 billion yuan (about $11.8 billion) in 2025. This is about 65 percent more than the previous year. This has extended the deadline for repaying the bonds. Vance is now struggling to survive and avoid default.
The government is active to save the company
The company is also negotiating debt restructuring and is looking for more time to pay off larger bonds. This means that the company is taking a new loan to repay the loan. However, investors are now worried that stocks and stocks are falling.
It is worth noting that China’s real estate sector has been in recession for the past 5 years. The crisis isn’t limited to the company. If this defaults, banks, bondholders, retail investors and construction companies will also be affected.
China Vankke Company was founded in 1984 in Shenzhen, China. This was a time when China was initiating economic reforms and gradually opening its doors to private companies. In the beginning, Vhanke was a commercial company. However, it soon saw opportunities in real estate. Which became its future. From the 1990s to 2015, China Vhanke became the backbone of China’s real estate.
The company focused on middle-class housing. Timely project delivery and affordable pricing became its hallmark. In 1991, Vankke became one of the first real estate companies to be listed on the Chinese Stock Exchange. It has long been considered one of China’s most trusted property companies.
After 2016, Venke expanded rapidly, and during this period, Shenzhen Metro Group (a state-owned company) became its major shareholder.
It is worth noting that China’s major real estate companies are facing difficulties one by one. Country Garden was previously China’s largest private sector developer. Where the sale of the house was going on at a rapid pace. However, sales and project deliveries have declined and the company’s debt pressure has increased.
The real estate crisis in China started in Evergrande. It has now been removed from the Hong Kong Stock Exchange. The failure of Evergrande brought the real estate crisis in China into the public eye. However, the government is currently working to save Bhanke. However, the government has not directly provided a large-scale government bailout package to Bhanke. Vanke is trying to get bondholder approval for an extension to increase payments on some onshore bonds. Which is a form of support to avoid default.
China’s city authorities have taken measures such as simplifying and relaxing housing purchase rules to stimulate real demand.
In 2021, the Chinese government implemented the “Three Red Lines” rules in the real estate sector. Which means there is no easy loan. After this, major developers such as Evergrande collapsed, and the pressure slowly trickled to the vantage point.
In 2025, Vanke recorded its biggest loss in decades. Investor confidence is slowly declining, and this is directly affecting China’s GDP. –Agency
