Top Chinese developers’ losses mount as debt overhaul props up operations

A residential building under construction by China Vanke in Hangzhou, Zhejiang province, in March 2024.

Photo: AFP Major Chinese property developers reported operating losses in 2025 as a recovery in the world’s second-largest economy remained elusive after five years of decline, with some headline profits driven mainly by non-cash gains from debt restructuring.

China Vanke posted a record 88.56 billion yuan (US$12.9 billion) loss last year in the latest sign that mainland developers continued to struggle under debt pressure and slowing residential sales.

The developer said its annual revenue fell 32 per cent to 233.43 billion yuan, while the basic loss per share was 7.45 yuan, down 78.4 per cent.

The loss, which exceeded Vanke’s 82 billion yuan forecast, was its second full-year deficit since its 1991 initial public offering.

In 2024, the company reported a loss of 49.48 billion yuan.

Property sales volume dropped 43.4 per cent to 10.25 million square metres (110.33 million sq ft), with sales revenue down 45.5 per cent to 134.06 billion yuan, according to filings to the Hong Kong stock exchange on Tuesday night. “Despite efforts in repaying 33.2 billion yuan bonds since 2025, in the face of 14.68 billion yuan maturities in 2026, Vanke intends to seek long-term debt resolution solutions based on its actual operating conditions, aiming to secure a window period to stabilise operations and resolve risks,” said Griffin Chan, an analyst at Citi Research, in a report on Tuesday.

James Macdonald, head of research for China at property consultant Savills, said a broad-based recovery in the residential sector had yet to be seen. “There are some pockets of stabilisation and early signs of improvement – partly due to policy support and a low base – but overall conditions remain subdued,” he said.

Based on weekly registrations in 34 cities, new home sales fell 15 per cent year on year last month, Citi said in another report released on Tuesday.

It said sales in tier-one cities fell 23 per cent, partly due to a lack of supply, with those in tier-two and tier-three cities down 12 per cent.

Secondary home sales improved, rising to 316,000 units in the week ending March 22, the highest weekly figure since May 2025, driven by tier-one cities, Citi said. “Local easing is a positive signal on market sentiment,” Chan said. “[We] expect volume stabilising in April after the beat in March.” Other private developers, including Country Garden Holdings, CIFI Holdings (G

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