Property developer China Vanke has refused to call an extraordinary shareholder meeting (EGM) as requested by its largest stakeholder Baoneng, the company announced on Sunday. Baoneng is seeking to oust the CEO and members of the board of China Vanke.

Vanke's board is yet to release a formal response to why it is not granting Baoneng's request. The company made the announcement without giving any further explanation on the decision during a stock exchange filing. The developer said it would inform the shareholders who sought for the EGM about its decision.

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The China Vanke saga began after financial conglomerate Baoneng, which holds a 24 percent stake in the company, opposed the real estate giant's $9.3 billion deal to make Shenzhen Metro Group its biggest investor. Baoneng claimed that the agreement would only result in dilution of shareholder equity and earnings.

Furthermore, it claimed that China Vanke's management appears to be controlled and manipulated by "insiders" and is thus is not competent to represent investors' interests.

On the other hand, China Resources, the second-largest shareholder, has said it does not support Baoneng's proposal. The company did not give reasons why it is opposing the Baoneng's move. However, China Resources said it would consider a future board restructuring "from a perspective that is beneficial to the company's development."

Meanwhile, following a six-month suspension, shares of China Vanke Co. plunged by 10 percent when it resumed trading in Shenzhen on Monday. In the mainland stock market, the A shares, which have been stopped since December 18, dropped to 22 yuan ($3.30). On the other hand, its Hong Kong-traded bourse increased by 1.2 percent to 13.17 yuan ($1.98), cutting its decline to nearly 32 percent in 2016.

Tagschina vanke, Baoneng, China Resources, Shenzhen Metro Group, extraordinary shareholder meeting