Closer Look: Vanke Deal Signals Evergrande Hedging Risks in Cooling Property Market

(Beijing) – China Evergrande Group’s decision to become the fifth largest shareholder in troubled homebuilder China Vanke Co. may be the company’s latest move to diversify income streams to cushion blows from a weakening property market.

In an August 8 filing to the Shenzhen Stock Exchange, Vanke said the Guangzhou-based real estate firm founded by billionaire Xu Jiayin, or Hui Ka Yan, increased its stake in the rival to 5 percent.