China Vanke Co. Ltd., the biggest residential real estate developer in China and one of its earliest private enterprises, is mired in a public dispute with its biggest shareholders for control over the company—an almost unheard of corporate event in China’s fledgling financial markets.
How the saga plays out could serve as a litmus test for the independence and maturity of China’s capital markets.
On Dec. 18, shares of Shenzhen-based Vanke jumped past the 10-percent daily limit for the second consecutive day as rumors of a corporate takeover swirled after three affiliated companies accumulated a combined 23 percent of Vanke public shares. Vanke shares reached an eight-year high, up almost 50 percent for the month. As of Dec. 18, the property developer was trading at three times its book value.
At the company’s request, shares were suspended from trading in Shenzhen and Hong Kong.
