China Vanke to Set up Investment Funds With China Merchants Bank

China Vanke Co. (2202.HK) has agreed to set up two investments funds with units of China Merchants Bank Co. (3968.HK) for consolidating the commercial properties of the Chinese real-estate developer.

China Vanke said after markets closed Monday that it will contribute a combined 5.03 billion yuan ($730.4 million) in the two funds, which will in turn acquire mature commercial property projects held by the Hong Kong-and Shenzhen-listed developer.

China Vanke will hold a 39% stake in each of the funds while China Merchants' units will hold a combined 61% interest.

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May 22, 2017 22:01 ET (02:01 GMT)