China's national market regulator - China Securities Regulatory Commission (CSRC) - has issued a stern warning to the management of China Vanke and its major stakeholders over the ongoing takeover dispute with Baoneng Group.

The securities watchdog, in a statement on Friday, asked China Vanke and Baoneng Group to resolve their differences immediately. The CSRC further noted that it is keeping an eye on the matter and will crack down on any illegal activities.

Like Us on Facebook

"We condemn Vanke's related shareholder and the management team and hope that the two sides will take immediate and effective measures to solve the problem based on laws and regulations," CSRC spokesperson Deng Ge said in the statement.

Ge added that both sides have disregarded the stability of the capital market, disregarded the sustainable development of the firm, and disregarded the interests of all medium and small shareholders. The CSRC has launched a formal probe into the matter.

China's securities watchdog urged insurance companies to stay away from becoming financing platform for company's major stakeholders.

China Insurance Regulatory Commission (CIRC) chairman Xiang Jumbo on Thursday said that insurance companies should provide financial support for cutting excess capacity by supporting industry mergers and acquisitions, rather than becoming the 'automated teller machine' to finance major shareholders.

China Vanke Co Ltd. is country's biggest home builder while the company's largest shareholder Baoneng is a real estate firm based in Shenzhen. They have been engaged in a bitter tussle over the control of China Vanke since last year. The conflict led to a massive loss in market capitalization of China Vanke.  

Tagschina, china vanke, China Securities, CSRC, Baoneng