China Vanke Co. dollar bondholders are pressing the distressed builder to consider debt-to-equity swaps, aiming to avoid being sidelined in a potential restructuring. Investors seek a more active role as negotiations loom, which could rank among China’s largest-ever property sector debt resolutions.

The push reflects deep investor concern over Vanke’s liquidity and the broader property market downturn. Bondholders want to shape the outcome rather than accept terms set by the company or regulators. A successful debt restructuring could set a precedent for other embattled developers facing similar pressure.

What happens next hinges on Vanke’s willingness to negotiate. Market watchers will monitor any formal proposal and how it might affect the company’s share price and other Chinese property bonds. A contentious process could ripple through the country’s financial system.