Unreasonable fluctuation of Vanke’s bonds Shenzhen SASAC expressed its full support for Vanke’s response to risks.

　　Xinhua News Agency, Shenzhen, November 6 (Reporter Zhao Ruixi) Facing the recent irrational fluctuation of Vanke’s bonds, on the 6th, Vanke held a third-quarter performance briefing meeting with domestic and foreign financial institutions. Ye Xinming, member of the Party Committee of Shenzhen State-owned Assets Supervision and Administration Commission, said at the meeting that Vanke has long adhered to a sound business strategy and financial policy, and has sufficient security, and there are no financial risks and management risks as rumored. If Vanke encounters extreme situations, Shenzhen SASAC has full confidence, sufficient financial resources and tools to help Vanke actively respond through all possible market-oriented and legal means such as project cooperation, optimizing equity investment structure, bond subscription and coordinating financing of financial institutions.

　　Recently, Vanke’s dollar bonds have experienced problems such as falling par value and rising yield, which have been transmitted to domestic bonds, causing market concerns. Wang Yongjian, a sasac director in Shenzhen, said that Vanke is an important member of the big family of state-owned enterprises in Shenzhen, and will support the development of Vanke in accordance with laws and regulations, and help Vanke keep the bottom line of no operational risks.

　　Ye Xinming said that the Shenzhen State-owned Assets Supervision and Administration Commission fully recognized and trusted the professionalism of Vanke’s team. Vanke has long adhered to a sound business strategy and financial policy and has sufficient security. State-owned enterprises have the strength and ability to support Vanke in preventing and coping with various risks.

　　In addition to making a clear statement, the Shenzhen State-owned Assets Supervision and Administration Commission also put forward specific measures to be taken if Vanke encounters extreme circumstances: including but not limited to accelerating the development and construction of Vanke’s large-scale urban renewal projects through transferee and cooperative development; Improve the liquidity of all kinds of investment real estate held by Vanke through coordination and cooperation; Cooperate with Vanke to optimize the long-term equity investment structure; Actively organize municipal state-owned enterprises to participate in bond subscription in a market-oriented way; Actively coordinate various financial institutions to increase their support for Vanke’s financing.

　　Xin Jie, chairman of Shenzhen Metro, Vanke’s largest shareholder, said at the meeting that Shenzhen Metro will firmly stand with Vanke, and is ready to enrich the "toolbox" to support it, and will release it in an orderly manner according to market conditions to support Vanke. Specifically, it includes: undertaking some urban renewal projects of Vanke in Shenzhen in a market-oriented and rule-of-law manner, helping Vanke to revitalize its bulk assets and inject new liquidity into Vanke. The transaction amount is expected to exceed 10 billion yuan; Choose the opportunity to buy bonds issued by Vanke in the open market to boost market confidence.

　　Vanke management shared the latest operation in the third quarter at the meeting. In terms of cash flow, as of the end of the third quarter, Vanke held 103.7 billion yuan in monetary funds, covering 2.2 times the short-term debt. On the financing level, from January to October this year, Vanke’s new financing amount exceeded 85 billion yuan, of which the average interest rate of domestic new financing was only 3.64%. In the past 14 years, Vanke’s operating cash flow has always been positive. This year, Vanke still achieved positive operating cash flow in the case of 39 new projects in first-and second-tier cities. Vanke has always maintained the normal rolling cash flow management and stress test of the daily and weekly roses, which can know and control the capital situation in real time, and ensure the company’s safety through pre-plans.

　　Yu Liang, Chairman of Vanke’s Board of Directors, said that Vanke has always had confidence in the market, but the recovery of the market needs the joint efforts of three groups of forces: those who can buy, those who want to buy and those who need to buy. The demand for housing is still huge. Since August, many policies supporting reasonable housing demand have been issued in various places, which has created conditions for the release of demand. At present, it is necessary to maintain the stability of the industry through the joint efforts of all parties to restore consumer confidence.