Vanke’s largest shareholder says it will stay out of daily operations

Shenzhen Metro Group said the company had no plans to be involved in China Vanke’s daily operations at the Chinese developer’s annual general shareholders’ meeting in Shenzhen on Friday.

“We will not have a hand in Vanke’s day-to-day operations, but will play our part as the cornerstone shareholder,” chairman of state-owned Shenzhen Metro, Lin Maode told Vanke shareholders.

“We respect Vanke’s culture, its management team and the company will maintain its mixed ownership. It will not become a state-owned enterprise,” he said.

Vanke, China’s second-largest homebuilder, elected a new board on Friday after the shareholders’ meeting had been postponed for three months as its high profile shareholders fought for control of the company.

The near two-year battle ended this month after state-owned Shenzhen Metro, which supports Vanke’s current management, surpassed raider Baoneng Group to become the Shenzhen developer’s largest shareholder with a 29.38 per cent stake.

Three Shenzhen Metro executives were newly elected to the company’s 11-member board, including chairman Lin.