China Stocks Bounce Back as January Housing Prices Inch Downward

JiangSu JiuWu Hi-Tech has stopped exporting sorbents, which is used to extract lithium from brines, starting Feb. 1, signaling that Beijing's proposed export controls are already reshaping industry behavior, The Standard reported Tuesday.

Though Beijing's restrictions remain a proposal, companies like JiangSu JiuWu Hi-Tech and Sunresin New Materials are reportedly in talks with regulators, according to the report.

Industry insiders said the mere threat of controls is deterring exports, with banks demanding extra approvals and officials cautioning against major deals, The Standard wrote. The move underscores China's leverage over global lithium supply chains amid rising US-China tensions.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

The Chinese government's direct support for Vanke could signal the end of the property sector's liquidity crisis, Nomura analysts write in a note. Beijing is reportedly proposing a plan to allocate 20 billion yuan in special local government bonds to help Vanke by purchasing unsold properties and vacant land parcels. This would be the first direct liquidity support from the government to a major non-state-owned enterprise in the property sector. Moral hazard concerns have limited the government's willingness to provide such support since the property sector's credit crisis began in 1H21, the analysts note. If the aid is drawn from the government's own balance sheet, it could mark the resolution of the sector's crisis, they add. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

China is stepping in to help real estate developer China Vanke plug a funding shortfall of about 50 billion yuan in 2024, Bloomberg news reported Wednesday.

The plan includes 20 billion yuan in special bonds to buy Vanke's unsold properties, plus access to fresh loans and bond sales to cover its $4.9 billion in maturing debt, according to the report.

While investor confidence in China Vanke has improved, challenges persist, Bloomberg wrote. The company carries 982 billion yuan in liabilities, and Moody's further downgraded its rating to Caa1 from B3.

Shares of China Vanke slumped 2% in recent trade.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

China is stepping in to help real estate developer China Vanke plug a funding shortfall of about 50 billion yuan in 2024, Bloomberg news reported Wednesday.

The plan includes 20 billion yuan in special bonds to buy Vanke's unsold properties, plus access to fresh loans and bond sales to cover its $4.9 billion in maturing debt, according to the report.

While investor confidence in China Vanke has improved, challenges persist, Bloomberg wrote. The company carries 982 billion yuan in liabilities, and Moody's further downgraded its rating to Caa1 from B3.

Shares of China Vanke slumped 2% in recent trade.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Chinese authorities' reported bailout plan to help China Vanke could bolster its long-term viability, Daiwa's William Wu says in a note. Beijing is considering a 50 billion yuan funding to help Vanke repay debt, according to a media report, after the developer's largest shareholder, Shenzhen Metro, offered a 2.8 billion yuan loan earlier this week. While the Shenzhen Metro loan should help Vanke cover the repayment of a bond maturing Feb. 16, it still has another 2 billion yuan of public debt due Feb. 25, the analyst says. "If the bailout plan turns out to be as reported, we expect Vanke to receive funding support in coming weeks." The funding plan wouldn't only alleviate Vanke's near-term credit risks but also signify its ties with the state despite not being fully government-owned, Wu adds. H shares fall 4.9% to HK$6.04. (sherry.qin@wsj.com)

Chinese authorities' reported bailout plan to help China Vanke could bolster its long-term viability, Daiwa's William Wu says in a note. Beijing is considering a 50 billion yuan funding to help Vanke repay debt, according to a media report, after the developer's largest shareholder, Shenzhen Metro, offered a 2.8 billion yuan loan earlier this week. While the Shenzhen Metro loan should help Vanke cover the repayment of a bond maturing Feb. 16, it still has another 2 billion yuan of public debt due Feb. 25, the analyst says. "If the bailout plan turns out to be as reported, we expect Vanke to receive funding support in coming weeks." The funding plan wouldn't only alleviate Vanke's near-term credit risks but also signify its ties with the state despite not being fully government-owned, Wu adds. H shares fall 4.9% to HK$6.04. (sherry.qin@wsj.com)