Shenzhen Metro chairman attracted to Vanke’s ‘strong cash flow and promising growth potential’

Speaking at a forum discussing the financing of city transportation development, organised by the National Development and Reform Commission, Shenzhen Metro chairman Lin Maode said the company was examining various options within the country’s rail plus property development model and continued to expand its property portfolio.

Lin said Shenzhen Metro was recently involved into a deal with a listed company, adding it was the business’s strong cash flow and growth potential which attracted him.

“I cannot disclose too much. But many people asked me why I got into it,” said Lin, who did not identify the company, but it was generally accepted in the room he meant Vanke.

China Vanke in June announced a 45.6 billion yuan agreement to trade shares for sites with Shenzhen Metro, making the operator of Shenzhen’s subway system its biggest shareholder.

The move was aimed at fending off a buyout of the company by property and insurance company Baoneng Group.