Evergrand-er: Chinese Property Market On Verge Of Fresh Collapse As Vanke Bonds Implode

China Vanke, the embattled Chinese real estate giant that rattled markets last week after it became the first state-backed property developer to request a delay on a bond payment, reigniting fears around the Chinese real estate sector’s financial health (which as we noted recently has been in a 5 year downturn with no hope of a bottom) has again shocked creditors with details of the plan.

Shenzhen-based Vanke, which after the spectacular implosion of Evergrande five years ago, became the nation’s largest builder by sales, told bondholders Monday that it was seeking a one-year delay to pay the 2 billion yuan ($283 million) note originally due Dec. 15, Bloomberg reported. The 3% interest would also only be paid after a year. The proposed changes would require at least 90% approval from holders, based on the note’s prospectus.