Key facts
- China Vanke's net loss widened to 12 billion yuan in the first half of the year.
- The developer's contracted sales fell 45.5% to RMB 134.1 billion in 2025.
- Vanke booked RMB 56.1 billion in impairment losses in 2025, a major driver of its deficit.
- Asset impairments more than tripled to RMB 21.9 billion in 2025.
- Credit impairments increased by 29.5% to RMB 34.2 billion.
- Despite financial backing from Shenzhen Metro, Vanke faces liquidity stress.
China Vanke's net loss widened to 12 billion yuan ($1.7 billion) in the first half of the year, a significant increase from the 9.9 billion yuan loss reported in the same period a year prior. This deepening deficit underscores the ongoing struggles within China's prolonged property crisis, despite efforts to provide financial support. The developer's contracted sales plummeted by 45.5% to RMB 134.1 billion in 2025, reflecting the broader market downturn. A substantial portion of Vanke's wider loss was attributed to impairment charges, totaling RMB 56.1 billion in 2025. Asset impairments alone reached RMB 21.9 billion, more than tripling from the previous year, driven by falling home prices in major cities like Guangzhou and Shenzhen. Credit impairments also rose by 29.5% to RMB 34.2 billion, largely due to provisions for bad debts linked to entities associated with former Vanke president Zhu Jiusheng. Analysts from Bloomberg Intelligence noted that financial support from Vanke's largest shareholder, Shenzhen Metro, is unlikely to significantly alleviate the developer's liquidity stress or improve its prospects. In separate but related news, Chinese airlines are considering a sixfold increase in fuel surcharges on domestic routes, and South Korea has eased visa requirements for Chinese visitors.