China Vanke, once considered the gold standard of Chinese real estate developers, just posted a net loss of 14.95 billion yuan ($2.2 billion) for the first half of 2026. That’s worse than the 11.95 billion yuan it lost during the same period last year, and it brings the company’s cumulative losses since 2024 to a staggering 153 billion yuan.
The numbers tell a brutal story
Revenue for the first half came in at 70.17 billion yuan, down 33% compared to the same period a year earlier. Property development, which makes up about 69.4% of the company’s total revenue, is the core of the problem. Property services, representing roughly 26.3% of revenue, can only do so much to offset the collapse in the main business.
The sales figures are even uglier. The total area sold dropped 45.6% to 2.93 million square meters. Sales value plummeted 48.2% to 35.8 billion yuan.
A massive chunk of the damage came from asset impairment provisions totaling 42.73 billion yuan in the first half alone. Those writedowns reduced net profit by approximately 31.64 billion yuan.
The company’s new board, installed amid mounting debt pressures, had offered preliminary guidance in July projecting losses of 12 to 15 billion yuan. The actual result of 14.95 billion yuan landed near the top of that range.
A broader crisis, not just a Vanke problem
Shenzhen Metro, Vanke’s major shareholder, continues to provide support. And the company did manage to deliver 23,000 homes on schedule during the period. Local governments across China have been rolling out new policies aimed at stabilizing the property market, from easing purchase restrictions to offering subsidies for homebuyers.
What investors should be watching
Vanke’s debt maturity schedule is the most immediate pressure point. The new board inherited a balance sheet with significant near-term obligations, and the company’s ability to refinance or meet those payments depends heavily on continued support from Shenzhen Metro and the broader banking system.