Chapter 203 Lessons learned from the failure of private placement on July 21

After extensively soliciting the opinions of investors, Vanke gave up the private placement of 2 billion yuan.This addition failed.This made Vanke's management pay more attention to the protection of investors' interests.In the following years of development, Vanke continued to expand financing channels and formed a diversified financing system including banks, trusts, bonds, and overseas financing, avoiding the pressure brought by single equity financing on the market and investors. As early as 2000, Vanke had encountered a "financing door" similar to that of Ping An.At that time, in order to introduce China Resources Group as a strategic controlling shareholder, Vanke's board of directors proposed a plan to issue 450 million additional B shares to China Resources. Shareholders feel "damaged interests."

At the Vanke Shareholders’ Meeting at the end of 1999, a group of institutional investors represented by funds showed a fierce attitude towards Vanke’s management that was rarely seen in ordinary times. As a result, such pressure prompted Vanke to seriously reflect and actively respond.After extensively soliciting the opinions of investors, Vanke changed the 2 billion yuan private placement into a 600 million yuan allotment financing. Since then, Vanke has learned its lessons and focused on developing its own diversified financing channels—completely different from professionalizing its business, making A and B shares only one of Vanke’s many financing channels.In this way, Vanke's financing no longer needs to be controlled by others.

Financing is a need for the company's development, but not all shareholders are willing to support it.Therefore, we should open up diversified financing channels in a timely manner and be responsible to ourselves and shareholders.