China Vanke Co. and Dalian Wanda Commercial Properties Co. shares jumped in Hong Kong after the two Chinese property companies announced a strategic cooperation that will focus on land acquisition and project development.
Vanke rose as much as 6.4 percent and was 3.6 percent higher at HK$20.30 as of 11.17 a.m. local time Thursday. Wanda Commercial advanced as much as 3.6 percent and was trading 3.3 percent higher at HK$69.20.
The partnership may be slow, though the deal “has significant synergies,” Credit Suisse Group AG analysts led by Jinsong Du wrote in a note ahead of the announcement.
The pact will help Vanke secure more customers and provide development opportunities, as well as enhance its capabilities in commercial real estate, Yu Liang, the president and chief executive officer of the Shenzhen-based company, said in a statement.
“The industry is entering into its ‘silver age’ where traditional businesses still have room to grow organically, and new opportunities will sprout from this era,” Yu said.
— With assistance by Dingmin Zhang