- Shares jump as much as 5 percent at market open in Shenzhen
- Largest holder Baoneng raised Vanke stake to 24.97 percent
China Vanke Co.’s mainland-traded A shares rose, ending a two-day losing streak, after a unit of Baoneng Group, which is fighting for control of the nation’s biggest publicly traded developer, raised its stake in the company.
The developer’s A-shares jumped as much as 5 percent and traded 2.8 percent higher at 20.34 yuan as of 9:39 a.m. on the Shenzhen bourse. Shenzhen Jushenghua Co. and parties acting in concert have raised their stake in Vanke to 24.972 percent after buying more A-shares, Vanke said in a regulatory filing addressing abnormal stock moves. The A-shares resumed trading on Monday after being suspended since Dec. 18.
Jushenghua purchased 75.29 million A-shares, or 0.682 percent, in Vanke, on July 5, according to the statement. Vanke said it was not aware of undisclosed material information from other shareholders who own 5 percent or more in company. It wasn’t aware of any recent media reports with undisclosed material information that may have impact on its share prices, it said.
The A-shares declined by the 10 percent daily limit both Monday and Tuesday. Vanke’s H-shares jumped 5 percent to the highest in two weeks as of 9:39 a.m. on the Hong Kong exchange, while the benchmark Hang Seng Index declined 1.5 percent.
Baoneng, through units Jushenghua and Foresea Life Insurance Co., amassed enough stock in Vanke to become its largest shareholder last year, displacing state-owned China Resources (Holdings) Co.
Both have opposed a plan by Vanke to sell about $6.9 billion in shares to Shenzhen Metro Group as part of a restructuring plan to end what the developer has labeled a hostile takeover bid. Under the proposal, Shenzhen Metro would become Vanke’s biggest shareholder.
— With assistance by Emma Dong