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Baoneng pledges Vanke shares


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Baoneng pledges Vanke shares

has beeninformed by Jushenghua, a unit of its largest shareholder Baoneng Group, thatit pledged 37,357,310 Vanke A-shares to China Galaxy Securities Co. Ltd.

Asof July 12, Jushenghua holds 926,070,472 Vanke shares, all of which arepledged, representing 8.39% of Vanke's total share capital.

Vankehas been mired in a corporate ownership tussle with Baoneng, which China Resources as thedeveloper's largest shareholder in late 2015.

Thelatest announcement comes after Hua Sheng, an independent nonexecutive directorof Vanke, on July 12 confirmed via his Weiboaccount a People's Daily reportthat China Resources funded Baoneng's purchase of Vanke stock last year.

Citingan anonymous source, the Chinese-language report said that Baoneng pledged 2.02billion shares of Jushenghua to a division of China Resources in exchange forfunding in July 2015, the month that Jushenghua and another Baoneng unit,Foresea Life Insurance, started large purchases of Vanke shares.

Huadid not provide any information about the source of his information. On July13, he suggested in a series of Weibo posts that the pair is acting in concertand shares common economic interests, adding that the two companies even set upa 20 billion Chinese-yuan joint venture in Shenzhen's Qianhai district in July2015.

Asof July 5, Baoneng's holding in China Vanke amounted to 24.972%. China Resources a 15.24% stake in the developer asof May 31.

ChinaResources in June opposedVanke's 45.61 billion yuan asset restructuring plan, which would see thedeveloper issue shares to Shenzhen Metro Group to make it the top shareholder.

Whilethe plan was approved by Vanke's board, Baoneng soon requested an extraordinarygeneral meeting to oustmembers of the developer's management team, a proposal which Vanke's boardunanimously rejected.