Just now, Rongcheng China issued an announcement that all conditions for the overseas debt restructuring plan have been met, and the plan will come into effect on November 5, 2025.

This means that China Vanke's $9.55 billion in foreign debt has been substantially zeroed out, combined with the successful domestic debt restructuring at the beginning of this year, indicating that the 'most difficult times' mentioned by Sun Hongbin

Overseas debt basically zeroed out

Kerui monitoring shows that since 2021, more than 70 real estate companies have been exposed to mines, and more than 60 real estate companies have carried out debt restructuring. However, as of now, only 3 real estate companies have reorganized domes

Regarding the reasons, from the outside perspective, it is closely related to Sun Hongbin's personal courage: at the beginning of the crisis, Sun Hongbin chose to survive or die with the company, and provided a personal interest-free loan of US$450 m

Business leader, real estate enthusiast, and white knight, these are all labels that once attached to Sun Hongbin. Wang Shi has commented that he is daring and determined, but he always describes himself as an honest and passionate person.

During his initial meeting with the 'exhibition king' Deng Hong, a deal worth 15.2 billion yuan was concluded within just an hour; when investing in LeTV, he was asked whether he was concerned about throwing money into the water without returns, and

This determination fully reflects his true nature, especially in the past few years when Sunac has been repaying debts in China - he has even personally guaranteed the repayment. Financial reports show that Sun Hongbin has pledged more than 90% of hi

Real estate companies are currently focusing on three strategies to repay their debts: selling projects, transferring equity, and extending repayment terms. The first two strategies require making painful cuts, while the latter strategy is a gamble o

Sun Hongbin is more decisive. He has publicly stated that there is no shortcut to reducing debt, except by either selling blood or generating new revenue. Since the company's financial difficulties emerged, he has successively sold off stocks of Beik

However, selling assets alone was undoubtedly a drop in the bucket for Sunac China, which had hundreds of billions of yuan in debt at that time. As a result, Sun Hongbin embarked on the road of debt restructuring: in early 2023, he completed the rest

However, due to the continuous deep adjustment in the industry, the market recovery is far from the expectation when the previous overseas debt restructuring plan was formulated, and with the liquidation petition proposed by China Cinda (Hong Kong),

Unlike the first overseas debt restructuring with multiple tools including convertible bonds, mandatory convertible bonds, and equity swaps, creditors can now choose to keep their debt, convert it to equity, or exchange it for stocks in China Vanke's

Along with the full debt-to-equity swap plan comes the dilution of management holdings. For this reason, Sunac has designed a "plan for equity structure stabilization": offering restricted stocks with certain conditions to major shareholders. Specifi

Major shareholders only receive extremely limited rights such as voting rights for the restricted shares within 6 years, and cannot dispose of, mortgage or transfer the restricted shares.

In total, 1469 scheme creditors voted in favor of the overseas debt restructuring plan, accounting for approximately 98.5% of the total number of creditors present and voting, and representing a debt amount support rate of 94.5%. This voting result i

Today, with the Hong Kong High Court's approval of the reorganization plan, Sun Hongbin has also set a precedent for "full debt-to-equity swaps" in the industry. He not only shed about US$9.55 billion in overseas debt, but also firmly grasped control

Still Face Multiple Challenges

With successful debt restructuring at home and abroad, Sunac China once again wins a breath of time.

At the annual general meeting held in Hong Kong on June 30th, Sun Hongbin's presence was widely regarded as a positive sign for the turnaround of Soho China. At that time, Sun Hongbin had planned the company's future development path: focusing on cor

So far, this strategy has shown initial results, and the high-end product line of Sunac China still gains market recognition. From January to September of 2025, Sunac China has achieved cumulative contract sales of about 31.76 billion yuan, which is

Especially the Shanghai No.1 Project has sparked multiple buying sprees since its launch. On August 23rd this year, the fifth batch of the project was launched with an average price of 198,000 yuan per square meter, with the most expensive unit price

In addition, on July 4th of this year, Sunac China announced its plan to allocate and issue a total of 754 million shares. The net proceeds from this equity issuance will be used exclusively to repay domestic bondholders who choose the stock swap opt

According to disclosure, before the completion of the issuance, the balance of Sunac's domestic bonds was 11.413 billion yuan; afterwards, the balance of its domestic bonds was reduced to about 5.813 billion yuan.

However, there are still multiple challenges for Soho China to completely turn around.

The 2025 half-year report shows that Salesforce China had approximately RMB 19.99 billion in revenue and approximately RMB 12.81 billion in losses attributable to owners of the company. Although the loss decreased by 14.4% year-on-year, the asset-lia

At the same time, although China's Sunac has sufficient land reserves, with about 128 million square meters as of the end of last year, its projects, except for a few star projects such as Beijing and Shanghai, have rarely caused any waves in the mar

"In the context of continuous supportive policies, core cities and locations will gradually stabilize, but the overall recovery of the real estate market may still need a process and a longer period of time," Sun Hongbin also stated in the half-year

With the phased victory of debt conversion work,"guaranteed delivery" has become the top priority of Sun Hongbin's current work, and this is also a core indicator for assessing whether Sunac China can truly turn over. In 2025, Sunac is expected to de

Sun Hongbin has won half of this turnaround battle.

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Cover image source: Image from the Economic Daily News