Marco Polo Holdings Co., Ltd. Class ASZSE: 001386

Vanke's shares, bonds fall after bondholders reject payment extension

· Issued by Marco Polo Holdings Co., Ltd. Class A

** Vanke's SZSE:000002 shares, bonds slump after developer failed to secure bondholder approval to extend by one year a bond payment due on Monday, increasing default risks

** Stock falls more than 4% in Hong Kong, more than 2% in Shenzhen

** Several of co's onshore bonds slip, with one due January 2028 (CN149358SZ=) slumping more than 20%

** Setback for co, one of China's highest-profile developers with projects in major cities, renews concerns about property sector

** CSI 300 Real Estate Index SSE:000952 falls ~2%, flirting with record lows

** Hang Seng Mainland Property Index HSI:HSMPI softens 0.4%

** Vanke suppliers, including MarcoPolo Holdings Co SZSE:001386, Shenzhen Jianyi Decoration Group SZSE:002789 and Weiye Construction SZSE:300621, also decline

** Rejection in three-day vote that ended late on Friday gives developer grace period of five business days to pay 2 billion yuan ($283.6 million) (CN102282715=) on onshore bond

($1 = 7.0533 Chinese yuan renminbi)