Vanke Takeover Lays Bare the Frailties of China’s Corporate Governance Structure

The landmark China Vanke takeover battle, which has involved a growing cast of large companies and regulatory bodies, has most-certainly become the country’s highest profile corporate tussle to date.
But it has also fully exposed just how far behind the country still is when it comes to corporate governance, compared with what are considered “modern” standards. Vanke has long been considered one of China’s best managed firms, and chairman Wang Shi has often used his company as a showcase of modern enterprise. However, throughout the fascinating 10-month conflict between its leading shareholders, Vanke’s senior management has consistently shown a lack of respect for investors and regulations, from arbitrary trading halts, to allowing its independent directors to post insider information on social media.