Vanke seeks rail expansion

Leading property developer China Vanke Co Ltd is positively bringing in strategic partners and undertaking personnel changes to participate in urban rail construction and explore new business opportunities, experts said.

Vanke signed a memorandum of understanding with Shenzhen Metro Group Co to acquire a stake in a unit of the urban rail transit company for an estimated 40 billion yuan ($6.16 billion) to 60 billion yuan, the firm said in a statement to the Shenzhen Stock Exchange on Sunday.

Vanke plans to fund the acquisition mainly by selling new shares to Shenzhen Metro, and pay cash to make up for a potential shortfall.