Beijing — China's distressed-property risk is being cleared at an accelerating pace in 2026, as major developers finalize debt restructurings that were unthinkable during the sector's 2021–2024 crisis, easing systemic fears and freeing balance sheets to heal.
Country Garden's Landmark Deal
In December 2025, Country Garden's (碧桂园) approximately 17.7-billion-US-dollar offshore debt restructuring won approval from the Hong Kong High Court, while all nine of its onshore bond restructurings — worth about 13.77 billion yuan — cleared holder votes. The builder delivered nearly 170,000 homes in 2025, part of roughly 1.85 million handed over since 2022.
Vanke and the 2026 Wave
January 2026 opened with Vanke (万科) securing creditor support for three onshore bond restructurings, setting a positive tone. By late January, 18 of 43 distressed listed developers — carrying combined interest-bearing debt of about 1.84 trillion yuan (69.4% of the 2.65-trillion-yuan total) — had published restructuring plans.
Why It Matters
- De-risked balance sheets reduce the threat of disorderly defaults
- Freed liquidity supports "delivering homes" (保交楼) commitments
- Investor confidence in quality assets is recovering
With the heaviest restructuring wave now behind them, analysts say 2026 could mark the year leading developers reach the long-cycle bottom of earnings — a prerequisite for any sustainable sector recovery.
Source: Company filings, CRIC, 2026