China Vanke moves to fend off hostile takeover

China's largest property developer is expected to issue new shares to thwart consortium led by Baoneng.

China Vanke, China’s largest residential property developer, is facing a possible hostile takeover attempt from its largest shareholder and its reaction will provide a litmus test of the maturity of the country’s fledgling capital markets.

In a statement to the Shenzhen Stock Exchange on Monday, the company said it will disclose details of a restructuring plan that could involve new share issuance and asset purchases, as it moves to thwart a consortium led by Baoneng Group, a privately held property-to-financial conglomerate.

Shenzhen-based Vanke said its mainland-listed shares will resume trading no later than January 18 after it halted trading in Hong Kong and Shenzhen on Friday...

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