Goldman Sachs Suspends Vanke Rating Amid Hostile Bid: Chartby
China’s largest publicly traded developer has left analysts scratching their heads.
Banks including Goldman Sachs Group Inc., Bank of America Merrill Lynch and Deutsche Bank AG have either suspended, placed under review or downgraded China Vanke Co. after it was dragged into a battle over its control in the last three months of 2015. Little-known Baoneng Group has amassed enough stock in the company’s A shares traded on China’s Shenzhen exchange to displace the developer’s largest shareholder China Resources Co., a move labeled as a “hostile takeover” by Vanke’s management and leading to Anbang Insurance Group Co. boosting its shareholding in the developer. Goldman Sachs said it was suspending the ratings and target-price recommendations of Vanke’s A and H shares, listed in Hong Kong, while Merrill Lynch it was putting the H shares under review. Deutsche Bank cut its H-share recommendation to sell from buy, and Citibank Inc. cut both the A and H shares. The H shares resumed trading on Jan. 6, while the A shares remain suspended.