© Reuters. The logo of property developer China Vanke is seen on gates at a construction site in Shanghai, China, March 21, 2017. REUTERS/Aly Song/File Photo -The Hong Kong-listed shares of state-backed property developer China Vanke slid as much as 12% to a record low on Tuesday after it reported a 50.6% drop in 2023 core profit and no dividend payout late last week.
Investors have been dumping Vanke's shares and bonds in the past few weeks on cash flow concerns, triggering a rare central government directive to help the Shenzhen-based company beat a liquidity crisis. Separately, Vanke's business partner based in the north-eastern province of Shandong, Yantai Bairun Real Estate, published an open letter to the country's State Taxation Administration over the weekend, saying Vanke's management, led by its chairman, Yu Liang, had used the company to misuse funds, run a loan business at high interest rates and evade tax.
It added the"false accusations and business slander" had been defamatory and that Vanke would take legal action to protect its rights.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events.