China Vanke mulls marketization of property service business

    China Vanke (02202) said the Board agreed on the overall strategy that Vanke's property service business to pursue its rapid growth through marketization.
  Majority of new property projects taking on by Vanke's property service business will come from projects that are not developed by Vanke, but with a principle of not taking on any projects still for sale that are in direct competition with the Vanke's ones. Vanke's property service business is encouraged to realise a rapid growth via mergers and acquisitions as well as cooperation, and to conduct more innovations for its property service so as to deepen the community service and to improve its competitiveness.
  The Board also agreed to introduce the business partnership scheme for property service business. Such business partner scheme is only for employees of Vanke's property service business. Domestic or overseas entities engaged in Vanke's property service business will issue 10% of new shares (with 100% share capital after new issuance) to one or more shareholding entities established by the employees of Vanke's property service business. Subscription price for each share will be equal to the results valued by professional valuation institution. In which, 3.3% of the new shares will be allocated to property service business employees in 2015, while the remaining of 6.7% will not be allocated to any individual yet and will be transferred to employees once they meet the assessment standards in the future.