Real Estate Company to Resume Share Trading in Shenzhen Stock Exchange
China Vanke will be resuming it’s a-share trading based on a statement of the Shenzhen Stock Exchange. The real estate giant is planning to acquire s subsidiary company of the Shenzhen Metro Group for 45 billion yuan through a new share issue, thus making the subway operator the largest shareholder.
Shenzhen metro accounts around 20.65 percent of China Vanke total shares. The property company has unexpectedly suspended its trading last December, giving the reason that it was planning on issuing new shares that will be used for capital restructuring and assets acquisition. Trading was stopped after the company chairman opposed Baoneng Group’s acquisition of shares that will make Baoneng the largest shareholder of Vanke. Baoneng is a Shenzhen based conglomerate that deals in finance businesses and real estate.
Management did not welcome Baoneng as its biggest shareholder, during an internal meeting within the company citing reasons that they don’t have enough credit. And in response Baoneng released a statement that the company have always abide by the law and maintained a good reputation in the market.