Vanke gets Approval to Convert Shares
Vanke Co. stated yesterday has received the long awaited regulatory approval that will convert their Shenzhen listed B shares to Hong Kong listed H shares and will likely be the third mainland company that transfers its listing to a more active Hong Kong market successfully.
Vanke, the largest property developer in china in terms of revenue said that it had received approval from the Securities Regulatory Commission of China. The company first announced the plans to convert Hong Kong dollar denominated B shares to the Hong Kong exchange as the company kicks off their offshore expansion plans. B shares that are stock listed in Shanghai and Shenzhen. The company’s A shares will still be traded in Shenzhen.
By converting its B shares will enhance Vanke’s name globally and will assist in the company’s plan in tapping a much larger pool of investors for raising capital in the future. A property analyst said that investors hope that the approval will excite the market but it’s not enough since investors are now concern in investing in macroeconomic fundamentals of the property market.