China Vanke’s Shenzhen-listed shares fell by their 10 per cent daily limit yesterday, triggering a halt barely a minute after they resumed trading for the first time in more than six months.
The property developer, one of China’s largest by sales, has a mix of public and private shareholders that is unusual in a country where there tends to be a clear divide between state-owned enterprises and private groups. An unprecedented public power struggle has made Vanke a test case for whether the country’s ruling Communist party will allow market forces to prevail, as it has promised.
Yesterday’s fall of 10 per cent to Rmb21.99 per share prompted a temporary halt in trading as sellers overwhelmed buyers. The Shenzhen-listed A-shares last traded at Rmb24.43 on December 18, before being suspended as Vanke’s founding chairman Wang Shi sought support to see off a potentially hostile takeover.