2016-08-26

Strange Bedfellows: Vanke, Chinese Tycoon Wang Shi, and China (videos)

Strange Bedfellows: A Chinese Tycoon and the State:

Wang Shi is the head of Vanke (Domain: vanke.com), the world's largest home builder by sales. After decades of success, the star Chinese entrepreneur is fighting to retain control of the empire he created from scratch. Published  August 5, 2016, by WSJ.com.

China’s largest developer, Vanke (see stock chart below), has been involved in an eight-month takeover battle for control when conglomerate Baoneng Group emerged as Vanke’s largest shareholder with a 25 per cent stake. To fend off Baoneng, Vanke’s chairman Wang and his senior management team have sought out Shenzhen Metro, the state-owned city subway operator, as a white knight.

Bloomberg.com video August 21, 2016:

If above video does not play on your device, go here.

Stock chart of China Vanke Co., Ltd.
Stock chart of China Vanke Co., Ltd.
Vanke (Chinese: 万科) is a large residential real estate developer in the People’s Republic of China. It is engaged in developing, managing and selling properties across more than 60 mainland Chinese cities in the Pearl River Delta, Yangtze River Delta and Bohai-Rim Region, with the provision of investment, trading, consultancy services and e-business. It also has expanded into Hong Kong, the United States, and Malaysia since 2012. It is headquartered in Shenzhen, Guangdong province. Vanke was listed on the Shenzhen Stock Exchange in 1991, the second listed company in the Shenzhen Stock Exchange after Shenzhen Development Bank. It had the largest market capitalization in 2006 on the Shenzhen Stock Exchange. source: Wikipedia
Vanke holds its ground, reiterates management’s preference for Shenzhen Metro as its white knight | South China Morning Post | scmp.com August 22, 2016: "Vanke’s founder and chairman Wang Shi and president Yu Liang both skipped the company’s Monday earnings press conference in Hong Kong, instead leaving it to other executives to face the media ... the intrigue continues over Vanke’s control ... the uncertainties are distracting it from the business of building and selling real estate ... As many as 31 of Vanke’s projects have been affected, and the developer has faced “suspensions or even terminations because of uncertainties over the company’s future,” said Zhang Xu, executive vice president. Some senior staff are heading for the exit ..." See also Shareholder dispute dents China Vanke results | FT.com"Banks have reduced Vanke’s access to loans, according to its interim report, and global rating agencies have warned that the group’s corporate rating could be affected."  See also bloomberg.com video (Aug 21) here.
Evergrande Raises Vanke Stake to 5% by Purchasing More A-Shares | Bloomberg.com August 8, 2016: "Vanke has been at the center of a battle for control since last year when Baoneng Group displaced China Resources (Holdings) Co. as the largest stakeholder. The emergence of Evergrande as a shareholder was among recent twists in a dispute that has drawn scrutiny from China’s securities regulator."
China Vanke chief Wang Shi raises the stakes | FT.com June 28, 2016: "... In addition to maintaining his sense of humor amid the drama, Mr Wang appears philosophical about it all. In a social media post at the weekend, he noted that “sometimes the heavens will rain and brides will run away” — a flowery way of saying, in effect, whatever will be will be. The stakes are in fact rather higher than his casual tone suggests. The stage has been set for a remarkable showdown that will test the resolve of the Communist party to stand aside as market forces, depending on its viewpoint, either work their magic or wreak their havoc." See also: Baoneng raises stake in Vanke with $223m sneak attack - FT.com July 6, 2016.


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