Shares of China Vanke, the country's largest home builder, plunged in Shenzhen as their trading resumed on Monday following more than six months of suspension. The stock price tumbled by the daily limit of 10 percent to 21.99 yuan (3.3 U.S. dollars) at the opening of the market.
The real estate giant suspended trading in December 2015 as it got involved in a tussle over control of the company after the privately-owned Baoneng Group quietly bought enough shares last year to become its largest holder.Vanke chairman Wang Shi openly opposed the acquisition, calling Baoneng "barbarians" and expressing concerns over its credit score. Baoneng insisted that it had always abided by the law and had a good reputation.
The turf war escalated last month, when Vanke announced an asset restructuring plan worth 45.6 billion yuan (6.9 billion U.S. dollars) with Shenzhen Metro Group that would make the subway operator overtake Baoneng to become the biggest shareholder.
In response, Baoneng proposed ejecting Vanke's senior management team, including Wang Shi, who is also founder of the company. But the proposal was voted down by the board on Friday.
The restructuring plan also drew opposition from Vanke's originally largest holder China Resources, a state-owned conglomerate, which is worried that the deal would dilute its shares.
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