Investing.com -- Shares of China Vanke Co. Ltd. soared by 17% during the trading session following unconfirmed news that Chinese authorities are considering a proposal to assist the real estate giant with its funding challenges.
The government's support plan aims to address a significant 50 billion yuan funding gap that China Vanke faces this year, Bloomberg News reported.
The proposal includes allocating 20 billion yuan from special local government bond quotas to purchase unsold properties and vacant land from the Shenzhen-based developer. This financial maneuver is designed to help Vanke manage its public and private debt obligations due within the current year.
In addition to this direct support, Vanke and its affiliates are expected to receive access to other financing avenues, such as new bond sales and bank loans, to further aid in debt repayment.
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