China Vanke 'deeply apologizes' for $1bn loss

HONG KONG -- State-affiliated property developer China Vanke is expecting a net loss of as much as 9 billion yuan ($1.24 billion) in the first six months of 2024 as falling prices for new homes hit its margin.

The Shenzhen-headquartered company has drawn the spotlight in the ongoing property crisis due to its association with state-owned Shenzhen Metro, which holds a 27% stake. Until now, much of the issues in mainland China's property market have been centered on private companies such as Evergrande and Country Garden Holdings, the latter of which had its credit ratings withdrawn by Moody's Ratings on Wednesday. Whether Vanke can survive the downturn has implications for how long-lasting and widespread the crisis could be.