Vanke shareholder battle is a milestone for China's market

CHINA VANKE CO LTD, the country's biggest property developer, is experiencing a battle for control, as two of its major shareholders, Baoneng Group and China Resources, have called for an extraordinary shareholder meeting aimed at removing 10 of the 11 members of the board, in a bid to prevent a stock sale to Shenzhen Metro Group that would make it the company's biggest shareholder. Beijing News comments:

The Game of Thrones-style battle in Vanke offers much food for thought, because of the many questions it raises: How to define the interests of different shareholders in a joint venture? Private capital sometimes behaves in a rude manner, while State-owned capital is too bureaucratic; how to combine their positive elements while avoiding their weak points?

The battle for control of Vanke has been going on for almost a year now, and there have been ups and downs for both sides.