Guangdong Seeks Beijing Feedback on Draft Plan To Turn Vanke Into SOE; DD Completed for Proposed Stake Sales in VX Logistics, GLP 

China Vanke Co. Ltd.’s home province of Guangdong, has submitted a preliminary plan to the central government calling for greater state ownership of the developer, according to two sources briefed on the matter. Under the draft plan, the Shenzhen-based Vanke would eventually become a state owned entity instead of a so-called mixed-ownership entity, said the sources. The plan would only proceed if approved by Beijing, the sources said. The mixed-ownership status reflects the 27.2%-stake in Shenzhen- and Hong Kong-listed Vanke held by the eponymous-city-owned Shenzhen Metro Co. Ltd.. While there isn’t a fixed definition of an SOE in China, that classification generally requires the ownership of a majority stake by the state. The sources were not briefed on how the so-called nationalization would be executed nor whether Beijing has provided feedback on the proposal. The Shenzhen municipal government has already late last year established a working group to research potential solutions for Vanke and evaluate its financial conditions, according to the two sources briefed. The Shandong-based news outlet The Economic Observer reported late on Jan 16, citing sources, that a Shenzhen government expert group stepped in to oversee Vanke’s operations, following which the company might be taken over by the[...]