China's securities watchdog on Friday criticized both management and the largest shareholder of China Vanke, which are still tussling over control of the country's biggest home builder.
Responding to letters Vanke filed with exchanges and stock authorities calling for probes into Baoneng Group's Shenzhen Jushenghua Co., which quickly became top shareholder after major purchases of shares, the China Securities Regulatory Commission (CSRC) asked the two sides to restrain themselves or face punishment.
"It is a pity that instead of sincere and effective measures to settle differences, we have only seen moves that aggravate contradictions," said Deng Ge, CSRC spokesperson, citing disrupted operations, market impact and harm to small investors.
The CSRC condemned the activities and will take stern actions against any violations found in following investigations, Deng said.
The turf war over Vanke's control kicked off last September, when privately-owned Baoneng's sudden and massive buying of shares triggered a suspension of the company's shares on the stock market. Vanke chairman Wang Shi openly opposed the acquisition shortly afterwards.
The two sides then continued to squabble, leading to slumps in share prices after transactions resumed in early July. In the latest move, Vanke on Tuesday filed letters calling for official investigations over alleged illegal acts and insufficient information disclosures by Jushenghua.
Deng urged the two sides to calm down and discuss an agreement as soon as possible for the healthy development of the company and stable market order.
Shenzhen-based Vanke is currently China's largest property developer by sales revenue, while Baoneng, headquartered in the same city, is a conglomerate with real estate and finance businesses.
