CHINA’S securities regulator waded into the country’s most high-profile corporate battle, urging property developer China Vanke Co. and its biggest shareholder to resolve their dispute as soon as possible.

    The regulator reprimanded Vanke’s biggest shareholder and its management, saying their behavior ignored market stability and tarnished the company image, China Securities Regulatory Commission (CSRC) spokesman Deng Ge said at a regular briefing Friday.

    “Vanke and related shareholders have so far failed to put forward effective measures to iron out their differences,” Deng said at the briefing. “On the contrary, they’ve been escalating the conflict in various ways in disregard of the interests of small investors.”

    Vanke, the nation’s largest publicly traded developer, asked the stock regulator to investigate its largest shareholder, Baoneng Group, for alleged misconduct and illegal acts earlier last week.

    It has been embroiled in a tussle for control since last year, when Baoneng, until then an obscure conglomerate, displaced China Resources (Holdings) Co. as the developer’s largest stakeholder.

    At the time, Vanke’s management labeled it a “hostile takeover” and later formed a share sale plan that was widely viewed by analysts as a way to dilute Baoneng’s ownership.

    China Resources joined Baoneng in opposing Vanke’s US$6.9 billion share sale plan to tie up with public transit operator Shenzhen Metro Group. Together, the two shareholders own more than 40 percent of the firm’s stock.

    Vanke said Friday that it and Baoneng received notices Thursday from the CSRC that they had violated disclosure regulations on shareholding changes at Vanke.

    Vanke said the CSRC also requires executives from both parties to meet regulatory officials to discuss the matter.

    (SD-Agencies)