* In talks with funds and developers
* Shares traded at HK$13.24 in Hong Kong debut
* Correction needed for mainland property market-chairman
(Adds market context, share prices, chairman comment)
HONG KONG, June 25 China Vanke Co Ltd
, the country's largest residential property
developer, said on Wednesday it was in talks with global
investors, including funds and real estate peers, to sell a
strategic stake as the company seeks to expand overseas and tap
offshore capital markets.
The stake sale could be accomplished by issuing new shares
or via the purchase of shares from the secondary market, Vanke
Chairman Wang Shi told reporters at the company's Hong
Kong-listing ceremony on Wednesday.
"By moving to Hong Kong, it will help our international
brand...help to attract strategic investors. It will be more
healthy for Vanke to leverage on this international platform,"
Vanke converted its B-shares in Shenzhen into H-shares
and listed in Hong Kong by way of introduction without
raising any new capital. The Hong Kong shares traded at HK$13.24
at 0312GMT, higher than its B-shares' last closing price of
HK$12.41 on June 3.
Speaking at the ceremony, Wang also said it is necessary for
the mainland property market to correct now and it may take two
to four years for such a correction.
"I am worried that if the market doesn't correct, the bubble
will burst like we saw in the case of Japan. That would be
trouble, so a correction is necessary. It may take two to four
years (and) the market will be more healthy," Wang said.
Vanke president Yu Liang recently said the slowdown in
China's property market heralded the end of the golden era for
Chinese real estate, but said the outlook for the property
sector remained healthy.
The comments came at a time when China's average home prices
fell for the first time in two years in May and price weakness
spread to more major cities, according to official data last
week. That added to signs of a cooling in the property market
that poses a risk to the broader economy.
The company announced in January last year it would move its
foreign-currency B-shares to Hong Kong, becoming the third
company to leave the mainland's moribund B-share market in
The debut price outperformed its A-shares listed onshore,
which were up 0.3 percent at 8.11 yuan, an equivalent to
B-share shareholders, including China Resources Corp,
Singapore state investment arm GIC and Asian asset
manager Value Partners, were offered a conversion
price of HK$12.39.
Vanke's H-shares account for 11.9 percent of total
(Reporting By Clare Jim and Yimou Lee; Writing by Anne Marie
Roantree; Editing by Michael Perry and Matt Driskill)