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News  ›  Benzinga

China's Property Debt Crisis Muddles On, As Profits Evade The Pet Economy

Benzinga Logo Benzinga By Bamboo Works
China's Property Debt Crisis Muddles On, As Profits Evade The Pet Economy

Chinese property developer Vanke secured a 30-day grace period on 3.7 billion yuan in maturing bonds, continuing its strategy of gradual debt restructuring rather than bankruptcy. Meanwhile, pet hospital operator Ringpai is pursuing a Hong Kong IPO despite struggling profitability due to high operational costs, expensive equipment, imported drugs, and weak consumer sentiment in China's post-Covid recovery.

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CHVKY   negative

Company is in a severe liquidity crisis with massive debt obligations, relying on repeated grace periods from creditors rather than achieving sustainable financial recovery. Government backing is weakening as authorities signal unwillingness to provide additional support.