HONG KONG, Dec 22 (Reuters) - Developer China Vanke

is expected to announce the outcome later on Monday

of a bondholder vote on its plans to delay the repayment of a 2

billion yuan ($284 million) ‌bond by a year as the company seeks

to avoid defaulting on its debts.

The company also wants creditors to extend ​a five-day

repayment grace period ending on Monday to 30 trading days. The

bond matured on ‍December 15.

Ever since China Evergrande ( EGRNF ) triggered a debt

crisis in the country's ⁠massive property sector in ⁠2021, many

developers have failed to make bond repayments without roiling

markets.

However, analysts said Vanke's focus on the country's

top-tier cities ‌could knock homebuyer confidence in those

locations, where house ​prices have been stabilising, and add to

the woes of the wider property sector, which once made up 25% of

China's economy.

Bondholders rejected an earlier proposal ⁠by Vanke to extend

repayments.

In its latest offer, ‍Shenzhen-based Vanke ​sweetened the

proposal by offering to pay overdue interest by the end of the

five-day grace period later on Monday, its filing last week

showed.

"A repayment extension approval would be ‍positive from the

market perspective because it would provide a template for

Vanke's other yuan bonds to follow suit," said Steven Leung,

director of UOB Kay Hian.

"If bondholders reject the proposals, Vanke may need to

launch a restructuring with haircuts, which is actually more

ideal for Vanke because it will be able to cut the size of its

debt and ease some repayment ​pressure."

The second ‍bondholder vote started on Thursday and concluded

at 0200 GMT on Monday. Bondholders expect Vanke to announce the

outcome after the market closes on Monday.

In a separate ​vote, Vanke is also seeking to delay the

principal and interest payments by a year on a 3.7 billion yuan

onshore note due December 28, and extend the

note's grace period to 30 trading days from five days. Voting

started on Monday and is due to conclude on Thursday at 0700

GMT.

Shenzhen-listed shares of Vanke had risen 0.6% by 0400 GMT,

while its Hong Kong-listed shares were up 1.7%. Its yuan ​bond

prices were little changed.

Ratings agency Fitch last week downgraded Vanke's credit

rating by two notches to "C", indicating a failure to meet debt

obligations, and said it would downgrade the Shenzhen-based

developer again to "restricted default" if it fails to pay its

debt ‍after a grace period.

($1=7.0408 Chinese yuan)