(Bloomberg) — China Vanke Co.’s top executive was taken away by police and the Chinese property giant may be assumed by state authorities, the Economic Observer reported, citing unidentified sources.
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A task force sent by the local government of Shenzhen, where the state-backed developer is based, has stepped in to run the company, according to the report. Vanke may be taken over or restructured, the report added.
The Observer reported separately that Vanke Chief Executive Officer Zhu Jiusheng was taken by police. Zhu didn’t respond to calls seeking comment about the report. Vanke didn’t immediately offer comments when contacted by Bloomberg News on Thursday.
Vanke, a bellwether of the country’s property market, is facing a deepening bond selloff as worries grow about its mountain of debt coming due and a property crisis that remains entrenched despite government rescue efforts.
Vanke has $4.9 billion in yuan- and dollar-denominated bonds maturing or facing redemption options in 2025, its highest annual amount ever, and the most for any Chinese developer this year, according to Bloomberg-compiled data. Trading in the company’s bond maturing in January 2028 was halted Thursday after its price plunged.
Vanke told Bloomberg News earlier that it will make all efforts to deal with its public debt obligations this year.
Because of its state backing through its largest shareholder, Shenzhen Metro Group Co., Vanke has long been seen as more insulated from the risk of default than some of its peers.
–With assistance from Emma Dong and Jackie Cai.
(Updates with details on possible takeover from first paragraph.)
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