CHINA Vanke Co., the country’s largest listed developer, is interested in investing in property units of State-owned enterprises as China opens up State-dominated industries to private capital.

    Many State-owned firms have expanded into property development in recent years, attracted by big profits, although tighter credit and a slowing economy have raised concerns over the outlook for the sector.

    “We see opportunities from the reform and opening, State-owned enterprises selling their competitive business. We are willing to cooperate,” Vanke president Yu Liang said yesterday. “We will make some big moves in mergers and acquisitions and equity investment.”

    In February, China’s decision to sell a stake in a subsidiary of Sinopec Corp., Asia’s biggest oil refiner, signalled more privatization of its State-owned sector will take place soon.

    Vanke’s comments come just a month after it said property prices in some Chinese cities are overheating. Weaker home price data and reports that developers have cut prices have also rattled investors.

    Vanke has joined a host of developers in venturing overseas at a time when tighter liquidity is fuelling worries over the outlook for China’s property market.

    Yu said Vanke’s total overseas investment for the next five years would not exceed 10 percent of the company’s overall investment over that period.

    In February, it announced it will team up with U.S. developers RFR Holding and Hines on a residential tower in New York that will target high-end customers, its second project in the United States after it tied up with Tishman Speyer last year on a project in San Francisco. (SD-Agencies)