BRIEF: China Vanke pledges 18.3% of Onewo’s shares to Shenzhen Metro
China Vanke (2202.HK) has pledged about 210 million shares of its property management arm, Onewo Inc. (2602.HK), as collateral for a recent major loan from Shenzhen Metro Group, Onewo said on Monday.
Vanke borrowed 2.8 billion yuan ($383 million) from Shenzhen Metro, one of its major shareholders, but had to provide 4 billion yuan in assets as collateral. The Onewo shares would also be used as collateral for the loan. Vanke currently controls 660 million Onewo shares, representing 57.12% of the company’s share capital.
Vanke is just one of many Chinese real estate developers suffering in China’s weak property market. The company previously warned it would report a 45 billion yuan loss for 2024, the largest loss since its listing. Vanke also announced that Chairman Yu Liang resigned and CEO Zhu Jiusheng was giving up all his positions for “health reasons.” The chairman’s role was passed to Xin Jie, the head and Communist Party Secretary of Shenzhen Metro Group.
Shares of Onewo opened up 2.4% at HK$22.50 on Tuesday, but later reversed course and were down 1.6% in afternoon trade. The shares are down nearly 22% from their high over the past six months.
By Lau Chi Hang
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