Baoneng Group, a Shenzhen-based conglomerate with real estate and finance businesses, said in a statement on Friday that the group has always abided by the law and believes the strength of the market in response to Wang Shi's concern over Vanke's shareholder's leveraged buying Baoneng Group bought more than 22 percent shares of China Vanke, overtaking the state-owned China Resources to become Vanke's largest shareholder in a move that deeply worried Wang Shi.
"Our management does not welcome Baoneng as our biggest shareholder," said Wang in an internal meeting on Thursday.
"The reason is simple, it just doesn't have enough credit." Wang is concerned that Vanke's credit score will be lowered by Baoneng Group, thus adding to the company's borrowing cost.
Vanke suspended its share trading from Friday afternoon over a new share issue scheme, as announced by the company.
Latest comments