Top Chinese developers’ losses mount as debt overhaul props up operations

Major Chinese property developers reported operating losses in 2025 as a recovery in the world’s second-largest economy remained elusive after five years of decline, with some headline profits driven mainly by non-cash gains from debt restructuring.

China Vanke posted a record 88.56 billion yuan (US$12.9 billion) loss last year in the latest sign that mainland developers continued to struggle under debt pressure and slowing residential sales.

The developer said its annual revenue fell 32 per cent to 233.43 billion yuan, while the basic loss per share was 7.45 yuan, down 78.4 per cent.

The loss, which exceeded Vanke’s 82 billion yuan forecast, was its second full-year deficit since its 1991 initial public offering. In 2024, the company reported a loss of 49.48 billion yuan.

Property sales volume dropped 43.4 per cent to 10.25 million square metres (110.33 million sq ft), with sales revenue down 45.5 per cent to 134.06 billion yuan, according to filings to the Hong Kong stock exchange on Tuesday night.

“Despite efforts in repaying 33.2 billion yuan bonds since 2025, in the face of 14.68 billion yuan maturities in 2026, Vanke intends to seek long-term debt resolution solutions based on its actual operating conditions, aiming to secure a window period to stabilise operations and resolve risks,” said Griffin Chan, an analyst at Citi Research, in a report on Tuesday.

South China Morning Post