China's market regulator on Friday condemned the management team and major shareholders of the country's largest property firm over a hostile takeover that has battered the firm's share price. Vanke's management team and related shareholders have not taken "effective measures" to resolve their differences, but have "intensified conflicts" instead, China Securities Regulatory Commission spokesman Deng Ge said in a statement posted to the body's microblog.
"(They) disregarded the stability of the capital market, disregarded the sustainable development of the firm, and disregarded the interests of all medium- and small-shareholders," he said. In December, Vanke's founder, 65-year-old Wang Shi, had trading of the dual-listed firm suspended in both Shenzhen and Hong Kong, blocking private conglomerate Baoneng from buying its shares after it became Vanke's largest shareholder with a stake in excess of 24 percent.
Baoneng has tried to eject Wang and Vanke's senior management and Vanke has also tried to bring in state-owned subway operator Shenzhen Metro Group to overtake Baoneng as its biggest shareholder. The battle has wiped billions off the company's capitalisation, with its share price plunging 28.8 percent in Shenzhen and nearly 30 percent in Hong Kong since December. The statement also urged both sides to seek "mutual recognition" within the framework of the law and regulations, adding that it would tighten supervision and management of the matter.