Vanke's move sparks talk of listing in HK

TRADING in shares of China Vanke Co was suspended in Shenzhen yesterday, sparking speculation the company is planning to convert its Hong Kong dollar-denominated B shares for a listing in Hong Kong.

Vanke suspended trading in both B shares and yuan-denominated A shares from yesterday as the property developer is "planning important issues," it said in a filing to the Shenzhen Stock Exchange late on Tuesday, without elaborating details.

The suspension triggered talk that Vanke may convert its 1.3 billion Shenzhen-listed B shares, valued at about HK$16.4 billion (US$2.1 billion), into Hong Kong-listed stocks as the company seeks to expand its funding channel globally.

Vanke bought 79.26 percent in Hong Kong-listed Winsor Properties Holdings in July as part of a long-term overseas expansion plan and the purchase offers the company an overseas source of financing.

The Chinese mainland's B-share market, set up in 1992, has seen foreign investor appetite dim after the government launched the Qualified Foreign Institutional Investor scheme that lets foreign investors access the mainland's larger A-share market.

We recommend:
Riding on BJ-GZ high-speed railway	The spending of China's rich	More Chinese cities see home price rise
Santa is coming and China takes a lot more notice	Harbin-Dalian high-speed railway starts operation	Nanjing Yangtze Fourth Bridge to open