HK Stock Market Move | China Vanke (02202) rose more than 7% during trading hours. Shenzhen Metro Group also provided a 4.2 billion loan, improving the company's liquidity and refinancing ability.

China Vanke (02202) rose more than 7% during trading hours, as of the time of writing, it was up 5.6% at HK$6.22, with a turnover of HK$385 million. In terms of news, Vanke announced that its largest shareholder, Shenzhen Metro Group Co., Ltd., plans to provide the company with a loan of 4.2 billion yuan. The loan will be used to repay the principal and interest of the company's bonds issued in the public market, with a loan term of 36 months. It is reported that on February 18, Vanke established the Wanxin Jinshi Pre-REIT Fund in partnership with CITIC Jinshi, New China Life, and Evergrande Life, from which Vanke will receive approximately 1.4 billion yuan of liquidity. On February 10, Vanke announced that Shenzhen Metro Group intends to provide a shareholder loan of 2.8 billion yuan to Vanke. The founder previously pointed out that the adjustment of Vanke's management team and support from major shareholders will provide important guarantees for the company's future development. At the same time, the support of Shenzhen State-owned Assets and financial institutions will provide more development space for the company, and the company's debt risk is expected to gradually be resolved. CCB International pointed out that the improvement in short-term liquidity and refinancing capabilities will provide Vanke with enough time to reduce inventory and leverage.