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China Vanke, one of the nation’s largest real estate developers and one that’s backed by state-owned enterprise Shenzhen Metro, is staring down a large maturity wall in 2026 — and appears to be out of funding options.

In recent years, Vanke has relied on operating cash flow and loan facilities from both local banks and Shenzhen Metro to service its debt after the bond market closed to Chinese real estate developers. Last week however, the company requested a one-year deferral on its on-shore bond of CNY 2bn ($283m) due December 15, a first for the company.

Bond prices dropped to a record low on concerns the government will end its support for Vanke and allow it to become the next property developer to default.

This report investigates Vanke’s current situation and how it got here. Watch out for part two next week, in which 9fin explores potential solutions the company may pursue to resolve the situation.