Bond Selloff at Another China Property Giant Spurs Authorities to Action

China’s housing slump is shaking the foundation of another giant property developer—and the government is trying to prevent the problems from spiraling out of control. 

China Vanke, one of the oldest and largest real-estate companies in the country, is the latest Chinese developer to fall victim to a market selloff that has made investors worry about its liquidity. Prices of some of Vanke’s U.S. dollar bonds tumbled to distressed levels after rival Country Garden failed to pay its offshore debt in mid-October. Vanke’s Hong Kong-listed shares have also close to half their market value this year.