Author | Zhou Zhiyu

Wall Street News learned that at the March 29 results meeting, while discussing Vanke's recent turmoil, Vanke President Zhu Jiusheng said that rating agencies have limited influence on Vanke's ratings. The cooperation between Vanke and the bank is based on long-term strategic cooperation, and financial institutions, including insurance companies, are Vanke's allies.

Zhu Jiusheng pointed out that Vanke has cooperated with 26 banks for a long time. They all support Vanke, and they are also developing together with Vanke to control risks. Currently, industry sales are declining and repayments are declining, and banks are Vanke's allies in risk prevention.

Zhu Jiusheng said that in the past, banks were always about overall credit financing, but as regulatory policies changed, they had to switch to a project-collateralized financing model. It was still difficult to switch overnight. Cooperative banks gave Vanke a 1-3 year transition period to slowly switch. In this conversion process, banks are only concerned about three things: where the money is going, where the goods are, and whether the cash flow, goods value, and operating cash flow are sufficient. Vanke still answered the bank's concerns very honestly and openly. It mainly answered these three questions. The bank's support is definitely sufficient. Last year, Vanke also raised an additional 89.7 billion yuan in financing.

Of course, every bank's risk appetite and strategy are different. Zhu Jiusheng said that at this time, it is necessary to merge similar items and solve the problem together. Vanke is also humbly accepting and actively discussing suggestions put forward by banks. Overall, cooperation with banks is at a stable and sustainable level.

Zhu Jiusheng also responded to the question of cooperation with insurance capital. He said that Vanke has long-term cooperation with major insurance companies. Beginning in 2014, Vanke switched to an operational service business, and carried out various explorations on many racetracks, forming various types of operating assets, making Vanke a natural asset trader for insurance.

Insurance capital supports Vanke's operating business more with debt plans, and the term period is 10 years or even more. Zhu Jiusheng pointed out that in terms of the plan, a time point for the payment period will be set. Among these, the company has the right to choose, as well as the right of both parties to choose. As the payment deadline approaches, everyone should sit down and discuss whether to exercise their rights.

Zhu Jiusheng gave special thanks to major insurance companies, including China Life Insurance, Ping An, and Xinhua, for their support for Vanke. It was with their support and these long-term patient funds that made Vanke appear more relaxed and resilient in setting up its business. It also made Vanke more determined and emboldened on the path of transformation.

Zhu Jiusheng pointed out that overall, Wanke will continue to adhere to a multi-channel financing strategy for a long time, and can move in the opposite direction and achieve mutual success with any financial institution. Especially at a time when the entire industry is being challenged, Vanke is particularly grateful for the support of financial institutions, support from bankers, and support from insurance companies.