The tit-for-tat exchanges between China Vanke and its largest single shareholder ratcheted up a notch on Friday, as the consortium of companies linked to Baoneng, and affiliated group Jushenghua, issued a statement explaining details about their corporate history and business structure. On Thursday China Vanke chairman Wang Shi questioned Baoneng’s credibility, and added that he did not relish the idea of the group as its largest single shareholder and worried that it would have a negative impact on the company. Wang’s comments made at an internal company meeting were widely reported in mainland media Thursday. Baoneng said in a statement, that their credibility stretches back to its founding in 1992, whereupon it developed into a multi-faceted group involving into property, logistics and finance businesses. Friday’s statement was issued by Baoneng, a holding company of Jushenghua and Foresea Life, which together owns 22.5 per cent stake in China Vanke, making Baoneng as the single largest shareholder. Jushenghua and Foresea Life, together hold a 20 per cent stake in China Vanke as of December 2. China Resources (Holdings) is the second largest shareholder in Vanke. In morning trade on Friday, shares of China Vanke were up 5 per cent in Shenzhen to 21.08 yuan, but its Hong Kong-listed dropped 2.2 per cent to HK$21.95. “We expect to see continued share buying from the Baoneng consortium and the stock price of Vanke has been held up by 30 per cent within the month,” said Edison Bian, head of China Property of the research department at UOB Kay Hian (Hong Kong). “ We remind investors of the potential volatile stock price performance if the broad market corrects, as the funding of Jushenghua’s stake in Vanke was largely through margin financing,”Bian said. China Vanke chairman Wang Shi said he did not welcome property and insurance group Jushenghua as the company”s single largest shareholder. In Vanke’s internal meeting yesterday, Wang said the property and insurance group does not have strong credibility and that willl bring negative impact on China Vanke, the largest home builder in China. Mainland media Sina.com quoted Wang as saying. Vanke announced earlier this month that Jushenghua and affiliated group Foresea Life Insurance, held a combined 20 per cent stake as of December 4, overtaking state-owned China Resources to become the developer’s largest shareholder. However, Jushenghua said in a regulatory filing on Wednesday (dec16) that it had used financial leverage, borrowing twice the amount of its own cash investment to buy Vanke’s mainland-listed shares traded in Shenzhen.