Jinke Co., Ltd. Completes RMB 147.0 Billion Debt Restructuring: Enlightenment for Rescuing Distressed Real Estate Enterprises via the State-Owned 'Industry + Finance' Model

Jinke Co., Ltd. officially completed its judicial restructuring in December 2025, with a resolution scale of RMB 147.0 billion setting a record for the largest restructuring in the real estate industry’s history [1]. This case is not only the enterprise’s own ‘battle to escape distress’ but also marks a new stage in risk resolution for the real estate industry. Jinke’s restructuring involved 8,400 creditors, making it the largest restructuring case in Chongqing, and took two and a half years to complete all execution work [1]. The restructuring plan adopted a comprehensive repayment model of ‘cash + stocks + trust beneficiary rights’; the full RMB 2.628 billion restructuring investment funds were received, and 529.4 million shares of capital reserve conversion were transferred [1].

is the primary factor for the success of Jinke’s restructuring. The Chongqing Municipal Party Committee and Municipal Government attached great importance to it, specially established a working group, and carried out systematic guidance in conjunction with courts and regulatory authorities, providing key guarantees for the progress of the restructuring [1]. This government-led model effectively coordinated the interest demands of all parties, reducing transaction costs and uncertainties during the restructuring process.

constitutes a key support for the restructuring. The restructuring introduced industrial investors such as Shanghai Pinqi Consortium, China Great Wall Asset Management Co., Ltd., and Sichuan Development Securities Fund, which not only injected incremental funds but also will form synergies in resource integration, management empowerment, etc. [1]. The new management team includes senior industry professionals such as Ma Weihua, former president of China Merchants Bank, as honorary chairman; Guo Wei, a veteran in the real estate industry, as chairman and president; and Feng Lun as a member of the expert advisory committee [2]. This trinity model of ‘state-owned capital + industry + finance’ has injected credit endorsement and professional capabilities into the enterprise.

balanced the interests of all parties. The restructuring plan clearly allocated part of the funds for ‘ensuring housing delivery’; from January to November 2025, Jinke completed the delivery of 143 million residential and commercial units with a delivered area of 2.2 million square meters [1]. This arrangement not only protects people’s livelihood rights but also lays the foundation for the enterprise to rebuild trust.

The shift in debt resolution thinking has universal reference value. According to data from the China Index Academy, as of December 2025, 21 distressed real estate enterprises have completed or been approved for debt restructuring or reorganization, with a cumulative resolved debt scale of RMB 1.2 trillion [1]. Most enterprises have cut more than 50% of their overseas debt in restructuring, and some enterprises like Longguang even reached 70% [1]. This tangible debt reduction has laid a key foundation for the repair of the enterprise’s balance sheet.

provides a model reference for real estate enterprises with different qualifications. Sunac chose the market-oriented negotiation path, becoming the first large real estate enterprise to basically ‘zero out’ its overseas debt, and obtained 98.5% of creditor support through a full debt-to-equity swap plan [1]. Jinke chose the judicial restructuring path, resolving debt through the state-owned capital-led ‘Industry + Finance’ model [1]. The two paths each have their advantages, providing reference choices for distressed real estate enterprises with different debt structures and qualification conditions.

has become a common choice for distressed real estate enterprises. Jinke clearly will focus on areas such as construction management, property management, and asset management, planning four business segments: investment management, development services, operation management, and special assets, and proposing a ‘technology-driven’ transformation positioning [1][2]. Sunac also focuses on light asset businesses such as construction management, property management, and asset management [1]. Such businesses do not require large-scale capital investment, can fully reuse the enterprise’s existing product capabilities, team experience, and management standards, and gradually restore ‘blood-making’ capabilities.

effectively guarantees capital supply at the project level. The approved loan amount for national ‘white list’ projects has exceeded RMB 7 trillion; through project-level screening, it precisely supports projects with a certain completion foundation and asset quality, and effectively separates projects from the overall debt risk of the real estate enterprise group [3]. This mechanism not only guarantees capital safety but also ensures the smooth progress of projects.

has become an effective model for revitalizing problematic projects. AMCs resolve complex creditor-debtor relationships through debt restructuring, asset integration, and liquidity support; construction management enterprises ensure project construction quality and delivery efficiency with professional operation capabilities [3]. This model has promoted many previously stagnant projects to transform from ‘distressed projects’ to ‘bestselling projects’.

reduces risk concerns about incremental funds. In bankruptcy proceedings, newly borrowed funds must be used for the common interests of all creditors, but their repayment priority is higher than ordinary claims, effectively reducing risk concerns about incremental funds [3]. This institutional arrangement has enabled some projects that were previously difficult to obtain financing due to mortgage defects or complex claims to restart.

Despite significant progress in debt restructuring, real estate enterprises still face challenges in sustainable operation. Jinke’s non-recurring net profit was negative for three consecutive years from 2022 to 2024, and its net assets at the end of the period were negative; even if it successfully applies to cancel the delisting risk warning related to restructuring, it may still be subject to other risk warnings due to sustainable operation capacity issues [1]. Sunac’s sales volume in the first 11 months of 2025 was RMB 33.89 billion, and its first-half revenue decreased by 41.7% year-on-year, still not out of the loss state [1].

Liu Shui, Director of Enterprise Research at the China Index Academy, pointed out that debt restructuring solves the ‘stock’ problem; the future healthy development of enterprises ultimately depends on their own ‘blood-making’ capabilities, and the recovery of market sales and the upgrading of business models are the key [1]. This requires real estate enterprises to actively find the right transformation direction, continue to make efforts in light asset operation, stock asset revitalization, new track exploration, etc., and also cannot do without the gradual optimization of the market environment, including the continuous empowerment of the ‘white list’ of financing coordination mechanisms, the implementation effect of de-stocking policies, and the deep participation of professional institutions such as AMCs.