The Year of the Snake has just begun, $CHINA VANKE (02202.HK)$ announced support from major Shareholder loans.

On the evening of February 10, CHINA VANKE announced that its largest Shareholder, Shentie Group, plans to provide Shareholder loans to CHINA VANKE, with a loan amount of 2.8 billion yuan. According to reports, these Shareholder loans will be used to pay off the company's maturing public debts, reflecting the major Shareholder's support for the company.

The loan term is 3 years, and CHINA VANKE will provide assets valued at no more than 4 billion yuan as collateral for the Shareholder loans, with the initial collateral being the equivalent value of the Stocks held by the company.

CHINA VANKE stated that the Shareholder loans are beneficial for meeting the company's funding needs, and the relevant loan interest rates are lower than the financing rates from Financial Institutions, while the loan collateralization rate is higher than the market norm, fully reflecting the support from the major Shareholder:

First, the loan interest rate is low, with the national interbank lending center's announced one-year loan market Quote (LPR) as the pricing benchmark, with a floating point of minus 76 basis points, currently only at 2.34%;

Secondly, the pledge rate is high. According to market conventions, the pledge rate for stock pledge financing is usually between 30% and 60%, while this time the pledge rate for Shareholder loans has reached 70%.

Analysts believe that before the Spring Festival, various parties had just actively expressed support for Vanke's steady development, and within a week after the holiday, the major shareholder quickly took substantial action, injecting liquidity into Vanke through the Shareholder loan, again demonstrating a firm determination and attitude in support of Vanke's healthy development, which also reassured the market.

Since 2024, as the major Shareholder, the Metro Group has actively supported CHINA VANKE in its risk management efforts. Last year, the Metro Group consecutively subscribed to 29.75% of the CICC Yingli public Fund and acquired the Shenzhen Bay Super Headquarters Base land from CHINA VANKE. In January this year, it again acquired 49% of the investment income rights of the Hongshu Bay property development project that CHINA VANKE holds.

In January this year, the Shenzhen Metro Group stated that it would continue to leverage its advantages to support the newly established operation management team in coordinating resource elements, mobilizing forces, and promoting the continuous, healthy, and stable development of CHINA VANKE.

Editor/lambor