Evergrande's Shenzhen Listing Depends on Sale of Vanke Shares, Source Says

(Shenzhen) — The Shenzhen backdoor listing plan of property developer China Evergrande Group hinges on whether it will back out of a heated contest for control of leading home builder China Vanke Co. Ltd. and instead support a firm owned by the Shenzhen government, according to a source close to the city government.

Under the plan released last month, Evergrande would inject almost all of its property assets and a range of other businesses into Shenzhen Special Economic Zone Real Estate & Properties (Shenzhen Real Estate). It would receive cash and stock in the Shenzhen-listed firm and become its controlling shareholder.