China Banks Throw Support Behind Teetering Developer Vanke (1)

Only a month ago, China Vanke Co. looked like it might become the nation’s next massive property developer to default.

Now, shares and bonds of the Shenzhen-based builder are soaring after Chinese banks stepped in with nearly $4 billion of funding — including a large syndicated loan announced on Thursday. One Vanke dollar bond due 2029 soared to about 65 cents from 40 cents in early March, while the company’s shares have gained 85% from an April low.

While skepticism remains about the builder’s long-term financial health, Vanke’s ability to secure new financing has eased concern about an imminent cash ...