China Vanke brings in Shenzhen Metro as 'white knight' in up to US$9.3b deal

Hong Kong

CHINA Vanke Co Ltd, the mainland's biggest property firm, signed a deal worth up to US$9.3 billion that could make subway operator Shenzhen Metro Group its biggest investor, intensifying a battle for control between Vanke's management and biggest current shareholder, financial conglomerate Baoneng.

The deal, which sent Vanke shares 14 per cent higher, comes as China developers splash out to try to beat a rise in land costs that has fuelled concern among Beijing government officials that a bubble may be forming. China Overseas Land & Investment Ltd on Monday separately agreed to buy conglomerate CITIC Ltd's residential China properties for US$4.8 billion.