Interim Results in Line, Operationally Still Strong Despite Ongoing Shareholder Battle

Evergrande Unlikely to Call an EGM Despite Buying More Shares

Swapping China Resources for Shenzhen Metro Should End Shareholder Battle

So Vanke Seems to Win the Battle Against Baoneng, but Is It that Simple?

What You Should Know About Vanke and Implications to Its Stock

Leading Independent Investment Research, Morningstar, Inc.

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Equity Bottom-Up

On July 4, 2016, China Vanke resumed trading of its A-shares after more than six months of suspension. Share prices were volatile in both Shenzhen and Hong Kong. As expected, A-shares dropped 10%, hitting the daily threshold for a temporary trading halt, while H-shares rose 6.7% to HKD16.22. The share price volatility reflected the uncertainty surrounding the ongoing shareholder battle.While the board approved the plan with a vote of seven to three, three board members associated with China Resources Group voted against it. Further, China Resources Group has also challenged the legality of the vote, contending that with one board member abstaining, the vote did not obtain the required two-thirds of board members for approval. Analyst: Phillip Zhong

On July 4, 2016, China Vanke resumed trading of its A-shares after more than six months of suspension. Share prices were volatile in both Shenzhen and Hong Kong. As expected, A-shares dropped 10%, hitting the daily threshold for a temporary trading halt, while H-shares rose 6.7% to HKD16.22. The share price volatility reflected the uncertainty surrounding the ongoing shareholder battle.While the board approved the plan with a vote of seven to three, three board members associated with China Resources Group voted against it. Further, China Resources Group has also challenged the legality of the vote, contending that with one board member abstaining, the vote did not obtain the required two-thirds of board members for approval. Analyst: Phillip Zhong

Proposed Restructuring Plan Unlikely to Receive Shareholders' Approval

China Vanke (H)

Proposed Restructuring Plan Unlikely to Receive Shareholders' Approval