China Vanke plans to list property management unit in Hong Kong

(Bloomberg) – China Vanke Co. plans to spin off and list its property management business in Hong Kong as part of a test of investor demand for property companies.

The proposal was approved by the company’s board on Friday, according to a statement to the Hong Kong stock exchange. The unit was established in 2001, he said.

Shares of Vanke, the country’s largest listed residential developer, fell to their lowest level in five years in Shenzhen this week amid a rout in property stocks.

Bloomberg reported in April that Vanke was working with an adviser to prepare for such a listing which could raise around $2 billion, according to people familiar with the matter. Vanke would join other Chinese developers such as China Resources Land Ltd. and Country Garden Holdings Co. in the spin-off of their management units.

Property management and related services were Vanke’s second largest revenue generator after property sales. The company contributed 15.4 billion yuan ($2.4 billion), or about 3.7% of the developer’s total revenue in 2020, according to its annual report.

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