Wang Shi, chairman of China Vanke Co, at a World Water Day Forum in Guangzhou, capital of Guangdong province. (Photo provided to China Daily)
The A shares of China Vanke Co Ltd, the country's biggest residential property developer, fell by the daily limit to 21.99 yuan ($3.31) at opening on Monday, after a months-long trading suspension.
The company released a statement on Saturday, saying it would resume A-share trading on July 4. It said it planned to acquire a subsidiary company of Shenzhen Metro Group for 45.6 billion yuan via a new share issue, making the subway operator its largest shareholder.
Shenzhen Metro will account for 20.65 percent of China Vanke's total shares, according to the plan.
The property company unexpectedly suspended trading in December 2015, saying it was planning to issue new shares for capital restructuring and assets acquisition.
The trading halt came after Vanke's chairman Wang Shi openly opposed the Baoneng Group's acquisition of shares that would make Baoneng Vanke's biggest shareholder. Baoneng Group is a Shenzhen-based conglomerate with real estate and finance businesses.
"Our management does not welcome Baoneng as our biggest shareholder," Wang said at an internal meeting in December last year. "The reason is simple, it just doesn't have enough credit."
In response, Baoneng said, in a statement, that the group had always abided by the law and had a good reputation in the market.
