Vanke Reprieve Still Leaves $1.3 Billion of Dollar Debt at Risk

China Vanke Co.’s woes are posing a growing risk for investors holding $1.3 billion of the embattled developer’s dollar bonds, as a temporary reprieve this week on local debt still leaves it lurching toward eventual default or restructuring in the absence of any rescue.

Once the country’s largest developer before stumbling under $50 billion of interest-bearing liabilities and an unprecedented real estate market slump, the Shenzhen‑based firm narrowly avoided default Monday on a local note. Creditors approved a longer grace period, but in a sign that the days ahead will remain fraught, rejected its proposal to extend principal repayment ...