On November 24, China Vanke Co., Ltd. (000002.SZ) responded to investor inquiries via the Shenzhen Stock Exchange's interactive platform, confirming that it has "fully divested its holdings in KE Holdings Inc." As an early investor in KE Holdings, Vanke did not disclose specific details regarding the timing, pace, or financial outcomes of the share sale, only clarifying the current "complete divestment" status.
Public records indicate that Vanke's investment in KE Holdings dates back to 2017. Prior to KE Holdings' IPO, Vanke invested RMB 3 billion to acquire shares. On April 19, 2017, Vanke signed a capital increase agreement with Lianjia Group, securing equity in Lianjia for RMB 3 billion—RMB 2.6 billion in Lianjia Real Estate and RMB 400 million in another Lianjia-affiliated company. At the time, Vanke expressed optimism about Lianjia's growth prospects but did not reveal its exact stake. A January 2017 announcement by Sunac indicated a 6.25% stake in Lianjia for RMB 2.6 billion, suggesting Vanke held a comparable share.
In March 2019, KE Holdings announced restructuring due to business needs, leading to changes in Lianjia's registered capital, investors, and management. Vanke and 21 other original investors transferred their Lianjia shares to KE Holdings through a mirroring agreement. Subsequent financing rounds further diluted Vanke's stake before KE Holdings went public on the NYSE in August 2020.
Notably, in April 2022, amid real estate market adjustments and KE Holdings' stock volatility, investors questioned whether Vanke needed significant provisions for its investment. Vanke responded that the KE Holdings stake constituted a minor portion of total assets, with limited impact on group performance.
The disclosure of Vanke's KE Holdings divestment comes during a period of operational pressure. On November 20, Vanke held an extraordinary shareholders' meeting where Chairman Huang Liping emphasized the need to "unite efforts and methodically mitigate risks." He acknowledged challenges in transitioning from the old "three highs" (high leverage, high turnover, high growth) real estate model, citing inevitable short-term pain and sustained pressure on performance. Huang called for collective wisdom, confidence, and patience, with major shareholder Shenzhen Metro Group pledging support to help Vanke navigate risks and achieve healthy development under market-driven and legal principles.
Vanke's management stated that, with stakeholder support, the company is intensifying efforts to enhance operations and streamline management. Future plans include capital maneuvers to divest non-core assets, improving cash flow and debt structures.
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