CSRC issues sharp reprimand to Vanke and its lead shareholders for ‘intensifying their conflict’
Securities watchdog says both parties disregarded market stability, the housebuilder’s development, and the interests of minority investors
The China Securities Regulatory Commission (CSRC), the country’s top securities regulator, heavily criticised the recent actions of both sides in the ongoing battle for control of housebuilder China Vanke on Friday, and warned any illegal behaviour would be punished.
“So far we haven’t seen Vanke’s management or its major shareholders make any sincere, effective efforts to eliminate the conflicts between them,” said Deng Ge, a spokesman for the CSRC.
“Instead they have intensified the conflict, regardless of capital market stability, the company’s development, and minority shareholders’ interests.”
The country’s top securities watchdog has stepped into the takeover battle, after the developer sent it an open letter this week, in which it accused its largest shareholder Baoneng Group of illegal fund raising as it build its holding in Vanke.
The regulator set up a separate group to investigate the ongoing Vanke situation on Wednesday, according to mainland financial information site Caixin, citing unnamed source.
Following that, on Thursday Shenzhen Stock Exchange sent letters to both Vanke and Baoneng, saying they had violated information disclosure rules during their recent actions against each other, urging them to make sure they make immediate disclosure of any material information in future.
Shenzhen-based insurer Baoneng has raised its stake in Vanke to 25.4 per cent in the past year.