Chinese regulators ask large banks to step up support for Vanke, sources say

A construction worker at China Vanke Co.'s Isle Maison development in Hefei, China. - Bloomberg

HONG KONG/SHANGHAI/BEIJING: Chinese regulators recently met financial institutions to discuss state-backed property developer China Vanke where they asked large banks to enhance financing support and asked private debt holders to discuss maturity extension, two sources said.

The sources with direct knowledge of the matter said the financial institutions were asked to make progress quickly, and that the State Council - China's cabinet - is coordinating effort related to supporting China Vanke.

Vanke declined to comment.

The National Administration of Financial Regulation and the State Council Information Office, which handles media queries for the council, did not respond to requests for comment.

Investors have dumped shares and bonds of Vanke over past weeks on liquidity concern, amid reports that the developer, previously seen by the market as financially sound, was seeking debt maturity extension with some insurers. - Reuters