(Yicai) July 3 -- Shares in China Vanke advanced today after the troubled Chinese property developer said it has received CNY5.7 billion (USD783.7 million) from the Bank of Communications, which is at least its eighth loan in two months, as the builder struggles to stay afloat amid a prolonged downturn in the real estate market.

Vanke’s share price [SHE:000002] was trading up 1.2 percent at CNY7.22 (USD1) as of 1.30 p.m. today.

The latest loan is valid for 15 years and is from Bank of Communications' Shenzhen branch, the Shenzhen-based developer said yesterday. A unit provided the collateral by pledging stakes in various projects. Some other subsidiaries will help Vanke with repayments as co-borrowers.

This is the latest in a string of loans that Vanke and its subsidiaries have taken out to cover costs. In June, Vanke secured a CNY4.1 billion (USD565 million) loan from Postal Savings Bank of China. And in May it bagged CNY1.2 billion from the Bank of China, CNY7.3 billion from Agricultural Bank of China, Bank of Beijing and also Bank of China, as well as another CNY1.3 billion from the Postal Savings Bank.

Vanke and its subsidiaries have now amassed CNY59.2 billion (USD8.1 billion) worth of external guarantees, equaling 23.6 percent of Vanke's unaudited net assets as of Dec. 31, 2023.

Yet sales continue to plunge. In the first six months, the company’s sales area sank 38.1 percent from a year earlier to 9.4 million square meters, it said in a separate statement the same day. The sales value came to CNY127.3 billion (USD17.5 billion), ranking third in the country. And last month, it shifted 2 million sqm, with a value of CNY25.1 billion.

Only six developers managed sales of over CNY100 billion (USD13.7 billion) in the first half, one less than a year ago, according to the China Index Academy. And 34 managed sales of over CNY10 billion, 10 fewer than a year earlier.

Vanke started a new development in Xuzhou last month that will cover 65,000 sqm. The firm needs CNY536 million (USD73.7 million) to pay for the land use rights.

Editor: Kim Taylor