China property

China Vanke shares tumble limit-down 10pc in early Shenzhen trading

PUBLISHED : Tuesday, 05 July, 2016, 10:26am
UPDATED : Friday, 15 July, 2016, 10:32am

China Vanke shares plunged Tuesday in Shenzhen by its daily limit of 10 per cent, reflecting the second straight day it has been limit down at the open since trading resumed Monday after being suspended for more than six months.

China Vanke traded at 19.79 yuan in Shenzhen at 9.30am.

Vanke has been trying to fend off a potential hostile takeover by privately owned conglomerate Baoneng since late last year. Its shares in Shenzhen were suspended on December 18 at the request of the company. Baoneng is the biggest shareholder in the company.

In late June, Baoneng requested an extraordinary shareholder meeting (EGM) seeking to oust the Vanke board, including chairman Wang Shi.

On Sunday, Vanke announced in an exchange filing that it had rejected the request.

Despite the initial board rejection, however, Baoneng can still propose to a supervisory committee to convene an EGM, according to the filing to the Hong Kong stock exchange.

Shares of Hong Kong-listed China Vanke traded at HK$16.42 at 9.40am, up 1.2 per cent from the previous close. However, the price is still much lower than the previous level of approximately HK$23 when its A-shares were suspended from trading in December.