MNI China Press Digest Dec 2: Vanke, REITs, 2026 Economy

Highlights from Chinese press reports on Tuesday:

• Chinese property developer Vanke has reached an agreement with creditors to extend the maturity of its 22 Vanke MTN004 bond by 12 months to Dec 15, 2026, according to Yicai. The bond’s 3% coupon rate will remain unchanged throughout the extension period, with newly accrued interest to be repaid together with the principal at maturity. Industry observers say the move may be aimed at securing extensions for all bonds coming due this year to avoid a hard default, allowing the company time to develop a broader restructuring plan. Beyond the MTN004 issue, Vanke also faces the maturity of another medium-term note with an outstanding balance of CNY3.7 billion at the end of December. The current extension proposal, covering a note with a CNY2 billion balance, is subject to a bondholder vote scheduled to conclude on Dec 12.
• China has released the latest edition of the List of Industry Categories for Infrastructure Real Estate Investment Trust (REITs) Projects, expanding the scope of eligible infrastructure REIT issuances to include the renovation of old neighbourhoods, redevelopment of former industrial sites and broader urban renewal facility projects, Securities Daily reported. Zhao Ran, director of the ICCRA Housing Leasing Industry Research Institute, said the inclusion of urban renewal facilities alongside the rental housing sector will accelerate the shift toward a new development model—based on operational capability and the revitalisation of existing assets. He added that promoting the integration of “urban renewal” and “marketised rental housing” will inject fresh momentum into stock assets and better align with urban housing demands.
• China’s GDP is expected to follow a “low-to-high” growth trajectory in 2026, reversing the pattern seen in 2025, according to Liu Xiaoguang, deputy director of the National Academy of Development and Strategy at Renmin University. Although the economy will continue to face downward pressure, Liu highlights three key drivers that could support an upswing, which include a moderately front-loaded rollout of major initiatives under the 15th Five-Year Plan, more proactive fiscal policy and accommodative monetary policy to stabilise and support recovery and ongoing improvements in micro-level balance sheets. To reinforce this shift, Liu recommends raising the 2026 fiscal deficit ratio to 5% to expand public spending capacity and strengthen fiscal countercyclical effects.