SHENZHEN Vanke is planning to take over a Shanghai-listed company and says it will be smoother than Bao An Group's bid for Yanzhong Industrial. The move follows the Beijing securities watchdog's recognition of Bao An's acquisition of a stake in Yanzhong in a ruling last month. In the ruling on China's first such bid since the return of stock exchanges, the watchdog said takeover attempts were allowed as long as those involved acted in accordance with the law. Vanke's head of securities Yu Liang said in Shenzhen yesterday the company was due to announce a takeover bid later this month in Shanghai. But he would not reveal the name of the takeover target or the percentage of shares that have been bought to date. In Shanghai yesterday, a dealer at Shanghai International Securities said four listed counters were believed to be takeover targets. Ace Electronic Equipment, Shenhua Electrical, Shanghai Feile and Shanghai Xingye Housing had all seen prices rising for weeks and were potential targets, he said. Under the country's interim securities regulations, a company is obliged to make an announcement within three working days when it takes, directly or indirectly, more than five per cent of the shares of a listed company. As such, it is understood that Vanke has not yet accumulated the five per cent level that triggers a public announcement because no report has been posted. Mr Yu said: ''Given the Bao An-Yanzhong [dispute], we will be better co-ordinated in our bid to launch a takeover.'' Vanke, a property developer and equity investor in Shenzhen with considerable exposure in Shanghai, said it would make sure everything was in accordance with regulations in the planned takeover attempt. But Mr Yu noted that much had to be done after a takeover. ''Most Shanghai-listed companies are trading at prices several times their net asset value, so better allocation of resources will have to be done after acquiring a listed company,'' he said. Vanke, a blue-chip stock on the Shenzhen exchange, has an A-share market capitalisation of 2.08 billion yuan (about HK$2.82 billion at the official rate) based on yesterday's close of 15 yuan. And on yesterday's close of HK$7.80 per B share, it has a B-share market cap of $351 million. For the first half of this year, the company's profit soared 275 per cent to 73 million yuan from 19.5 million yuan. Residential property development and equity investment each account for 40 per cent of Vanke's revenue, with the remaining 20 per cent shared equally between trade and industrial activities. About 60 per cent of its property projects such as Xijiao Villas and Vanke City Garden are in Shanghai, while one-third of its equity investment is in Shanghai. According to its B-share prospectus issued in April this year, it has adjusted net assets of 1.35 billion yuan. It listed A shares in Shenzhen in 1991, and its B shares were listed in May this year.