June 27, 2016 / 8:50 AM / 3 years ago

Vanke says business under pressure after Baoneng move to oust board

HONG KONG, June 27 (Reuters) - A plan by China Vanke’s largest shareholder bloc to oust the property developer’s board has led banks to reconsider how they rate the company’s credit, Vanke President Yu Liang told a shareholders’ meeting on Monday.

Financial conglomerate Baoneng, which built up a big stake in Vanke last year, is now seeking to oust founder and chairman, Wang Shi and the rest of the board, and has called for an extraordinary general meeting, Vanke said in a statement late on Sunday.

In the wake of Baoneng’s decision, “some of our projects now face the risk of cancellation, banks are reconsidering how they rate our credit, partners are looking to adjust business terms and head hunters are eyeing our employees,” Yu said at the firm’s annual shareholders meeting in Shenzhen.

Reporting by Clare Jim; Editing by Edwina Gibbs

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