Vanke Bondholders Could Lose Everything, Barclays Warns

A new Barclays report warns that offshore bondholders of Chinese developer China Vanke face severe losses. This highlights the continuing crisis in China's property market. The British bank outlined two possible scenarios. In its base case, bondholders would recover only about 10% of their investment. This is far below current depressed market prices. In a worst-case scenario, losses could be nearly total. Barclays said this would happen if the company fetched lower prices for its assets within China. Vanke, once considered a safer bet, is now struggling with falling sales. The analysis shows that even stronger developers are not immune to the sector's deep troubles.