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<Research>JPM Sees CHINA VANKE Executive VP's Departure as Non-Event; All Eyes on Debt Extension Approval
Recommend 7 Positive 21 Negative 10 |
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Yu Liang recently stepped down as CHINA VANKE (02202.HK)'s executive vice president, which JPMorgan believes to be a non-event, as the company had already entered a new phase (fully control by Shenzhen Metro) by the time he was redesignated from chairman to executive director last January, the broker wrote in its report. Yu's retention at that time was merely transitional. From JPMorgan's perspective, CHINA VANKE's attempt to seek debt extension in 4Q25 reflects limited support from the Shenzhen government, and it is "on its own" now. The next important dates are January 14 and 21, when creditor meetings will be held to approve the debt extension plan. If unsuccessful, CHINA VANKE will officially default, though it is already a distressed developer in JPMorgan's eyes regardless of the meeting result. Even if the extension succeeds, the broker believes it may merely "buy time" for the company to prepare for a more comprehensive debt restructuring, possibly involving debt-to-equity swaps. Referring to the debt-to-equity experiences of SUNAC (01918.HK) and SHIMAO GROUP (00813.HK), stock prices usually come under pressure after such swaps. JPMorgan has given CHINA VANKE an Underweight rating with a target price of HKD2.7. AAStocks Financial News |
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