China Vanke's Shares and Bonds Surge Following Moody's Downgrade Reassurance

Despite Moody's downgrade to 'junk' status, China Vanke reassures investors of controllable impact on financing, sparking a significant rally in its shares and bonds.

• Shares and bonds of China Vanke surged after the company reassured investors that the impact of Moody's downgrade was controllable.
• Moody's downgraded Vanke to 'junk' status but the company's statement on stable operations and refinancing channels led to a 10.3% increase in its Hong Kong-listed shares.
• Chinese authorities and banks are reportedly working to prevent Vanke from defaulting, with talks of a syndicated loan worth up to 80 billion yuan.
• Vanke's financial stress comes amid a broader real estate crisis in China, with major developers like Evergrande and Country Garden already defaulting.
• Despite the downgrade, Vanke remains one of the few Chinese developers with investment-grade ratings from other major rating agencies.

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