China Vanke H shares down 12.66 per cent after trading resumes
China Vanke’s H shares opened lower after it resumed trading on Wednesday .
The mainland developer saw its shares down 12.66 per cent to HK$20 when trade resumed at 9am. But the decline narrowed to 7.42 per cent to HK$21.20 as of 9.05am.
The company said in a filing late Tuesday to the Hong Kong stock exchange that it had consulted with the relevant regulatory authorities in Hong Kong and the mainland and decided to resume trading of H shares.
But Vanke said its Shenzhen-listed shares would remain suspended from trade pending a possible asset restructuring.
China’s largest home builder, Vanke requested a suspension of trading in its Hong Kong and Shenzhen shares on December 18 amid a suspected hostile takeover by its largest shareholder Baoneng Group, saying it planned to restructure its assets.
Vanke said it plans to disclose its asset restructuring details on or before January 18.
Last week Vanke said it intended to acquire a company via a share and cash deal which might include the issue of new A shares or H shares. It said it had signed a letter of intent on December 25 and was actively pursuing the arrangement, although it did not identify the company involved.
Vanke at the time also said it was also discussing a potential tie up with other vendors.
Vanke’s Hong Kong-listed shares closed at HK$22.90 before the December trading suspension.