China Vanke Co., one of China's largest property developers, saw its stock soar 7.64% in intraday trading on Monday. This surge came after the company received financial aid from government authorities to help repay its outstanding debt.
Shenzhen Metro Group Co., Vanke's largest state shareholder with a 27% stake, announced plans to provide a 4.2 billion yuan ($579 million) three-year term loan facility. This loan will be guaranteed by up to 6 billion yuan worth of Vanke's assets, according to a filing with the Shenzhen Stock Exchange.
The proposed financing follows a 2.8 billion yuan loan offer from Shenzhen Metro Group last week, highlighting the government's support for the struggling developer amid China's property market downturn. Investors welcomed the news, sending Hong Kong property stocks higher, with China Vanke leading the rally.
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