China’s real estate sector faces new turmoil as Vanke, once the country’s largest developer, teeters on the edge of default. Investor confidence has plummeted, with Vanke’s bonds losing over 30% in value, prompting trading suspensions. The company must repay nearly $2 billion by June 2026, raising fears of a broader crisis. Beijing has so far avoided direct bailouts, opting for limited policy support. Meanwhile, wider economic indicators show a faltering recovery—industrial output, investment, exports, and consumer spending are all slipping. As China grapples with this downturn, its ability to stabilise the property sector without sparking broader panic remains uncertain.
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