Inside the Great Wall:Vanke spends a total of RMB146bn for land acquisition in 1H17
On 6 July, Vanke (000002.SZ; 2202.HK) board secretary Sunny Zhu stated thatmarket consolidation among developers has increased, with top 30 developerstaking about 30% of market share, up 8ppt compared to 2016. Zhu also statedthat Vanke is still among the active developers in the land market. Including thelatest RMB55.1bn acquisition of assets, Vanke spent RMB146bn for landacquisitions in 1H17. During the same period, its contracted sales amounted toRMB277bn, up 46% yoy. (Guandian).
Deutsche Bank’s comment: We believe that the smooth transition in the boardcould enable Vanke to continue its strong execution. The market is also moreconfident in dealing with Vanke after the settlement of the shareholding battle.
Previously, Vanke announced that unstable shareholding structure negativelyaffected its business operations.