said in afiling to the Hong Kong Stock Exchange that it submitted a letter to fourChinese authorities requesting an investigation into its largest shareholder,Baoneng Group.
The contentsof the letter, titled "A report related to the request to investigate andpunish Jushenghua and its controlled asset management plans for their irregularand illegal acts," were not disclosed in the July 20 filing to the ChinaSecurities Regulatory Commission and its Shenzhen bureau, the Asset ManagementAssociation of China and the Shenzhen Stock Exchange.
Anumber of Chinese publications reported on the matter, without citing how theirsources obtained the letter.
Baoneng,through units Jushenghua and Foresea Life Insurance, has been building upstakes in Vanke sincethe second half of 2015, and it now controls 25.4% of the company, China's 21st Century Business Herald reported.
Vanke'sletter stated that Baoneng financed the share acquisitions by setting up nineasset management vehicles. Vanke claims this was illegal because the vehiclesdo not qualify as registered shareholders under Chinese law. The vehicles couldalso jeopardize the interests of minority shareholders, the letter reportedlysaid.
Accordingto an account in China's Securities Times,Vanke's letter alleges 12 problems with Baoneng's funding activities, includingpoor disclosure of information and suspected share price manipulation.
Baonengovertook China Resources as Vanke's largest shareholder in late 2015, afterwhich Vanke suspended its shares from trading and engaged in an asset-restructuringdeal with Shenzhen Metro Group Co. Ltd. that was aimed at fending off apotential takeover by Baoneng. In July, the company trading in Shenzhen after a morethan six-month halt.
Baoneng and the regulatory bodies could not be reached forcomment. Vanke was unavailable for comment by the time of publication.