China Vanke Could Keep Posting Losses Until 2028 -- Market Talk

Dow Jones02-03

0709 GMT - China Vanke could continue to post losses until 2028, Morningstar analyst Jeff Zhang says in a research note. Vanke guided a net loss of 82 billion yuan in 2025, which exceeded Morningstar's expectations, driven by a significant decline in property development margins, increased asset write-offs and losses in financial investments, they say. Continued external credit injections should enable its repayment of at least 40% of the 7.7 billion yuan bonds maturing in 1H 2026, he says. "Without a material rebound in profitability, we think financial aid from major shareholders and creditors remains crucial," the analyst says. However, if external funding support weakens, the firm could revisit the divestment of investment properties, Zhang adds. Shares last were last at 4.70 yuan. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

February 03, 2026 02:09 ET (07:09 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment