China Vanke sees shares rise 10 per cent on Hong Kong debut
Mainland developer keen to use the city's market to raise funds and attract investors
China Vanke shares jumped 10 per cent on its first day of trading in Hong Kong, and the chairman of the world's largest developer said yesterday it is in talks with strategic investors although it has no plans to issue new shares after listing in the city.
The stock opened at HK$13.66, up sharply from its closing price of HK$12.41 in Shenzhen on June 3 but the initial surge was eventually pared to close yesterday at HK$13.28. Most analysts rated Vanke as a buy and gave a price target above HK$15 per share.
Company founder and chairman Wang Shi told reporters the H-share float in Hong Kong and the delisting of its B shares in Shenzhen opened a fundraising channel for the firm and pried open a window for global investors to bypass mainland regulatory restrictions to invest in Vanke.
"Although we did not issue new shares to raise money, we can issue bonds here after we are listed [in Hong Kong]," he said. "The fundraising cost in Hong Kong is at least half below that in the mainland."
I always think consolidation is … necessary for China’s property industry
Wang added the company was talking to a few international strategic investors, but declined to reveal who they were and whether they would invest through share purchases in the secondary market or additional share issues.
