China Vanke has submitted a proposal to further extend the grace period for a 2 billion yuan bond repayment that matured on December 15, seeking an extension to 90 trading days. The Chinese property developer filed the proposal with the Chinese interbank market regulator on Thursday, outlining several measures to address the overdue bond payment.

Bond Restructuring Proposal

The developer's comprehensive proposal includes multiple components designed to provide relief while offering additional security to bondholders. The key elements of Vanke's proposal are structured as follows:

Timeline and Approval Process

The proposed extension would push the grace period expiration date to April 29, contingent upon approval from bondholders. This represents a significant extension from the original December 15 maturity date, providing the developer with additional time to arrange financing or restructure its obligations.

Additional Security Measures

As part of the restructuring proposal, China Vanke has offered to add receivables from certain projects as credit enhancements. This measure is designed to provide additional security to bondholders while the company works to resolve its repayment obligations. The developer has also committed to paying overdue interest by the end of the current grace period.

The filing with the Chinese interbank market regulator represents the latest development in China Vanke's efforts to manage its debt obligations amid ongoing challenges in the Chinese property sector.

China achieved a record trade surplus of $1.2 trillion in 2025, demonstrating remarkable resilience despite escalating tariff pressures from the United States. The milestone reflects the country's successful pivot toward diversified global markets as traditional trade relationships face mounting challenges.

Strong Export Performance Drives Record Surplus

China's exports increased 6.6% year-on-year in December, marking the fastest growth in three months and significantly exceeding economists' median forecast of 3.1%. This robust performance contributed to a monthly trade surplus of $114.00 billion in December, the highest recorded in six months.

Imports also exceeded expectations with a 5.7% increase, indicating continued domestic economic activity despite broader challenges in the property sector and investment climate.

Market Diversification Offsets US Decline

The trade war initiated during Trump's presidency has fundamentally reshaped China's export landscape. The US share of China's total exports fell to a historic low of 11% in 2025, representing an eight percentage point decline since Trump's first term.

Exports to the US experienced a particularly sharp decline of more than 30% in December, representing one of the worst monthly performances of the year. However, this downturn was more than offset by robust growth across other regions.

Product Mix Evolution and Higher-Value Exports

China's export portfolio has undergone significant transformation, with higher-value products driving growth while traditional manufacturing sectors contracted. Products including semiconductors, automobiles, and ships recorded gains exceeding 20% year-on-year.

Conversely, lower-end exports faced challenges:

• Toys, shoes, and clothing sectors contracted
• Traditional manufacturing products showed declining demand
• Government policy shifts affecting certain product categories

The Chinese government announced plans to cancel export tax rebates on hundreds of products, including solar cells and batteries, effective April, as part of efforts to address excess capacity and ease international trade tensions.

Economic Implications and Future Outlook

The record surplus underscores the persistent imbalance between China's manufacturing capabilities and domestic consumption patterns. While exports have supported economic growth, the country continues to grapple with a prolonged property market slump and reduced investment activity.

According to Bloomberg Economics, China's export resilience is expected to extend into 2026, particularly if the current trade ceasefire with the US maintains stability. However, Wang Jun, deputy head of the customs authority, acknowledged that "the external environment for China's trade development is still grim and complex" due to slower global economic growth and geopolitical fragmentation.

Despite these challenges, officials emphasized that diversified trading partnerships and strengthened economic resilience support solid trade fundamentals moving forward.