China Vanke Co. (000002), the country's largest listed developer, said it received approval to raise as much as 4.2 billion yuan ($536 million) selling new shares to finance the construction of apartments in Beijing and Shanghai.
Vanke's local-currency shares rose 1.3 percent to a record 12.95 yuan at the 3 p.m. close in Shenzhen. The company's shares have tripled this year.
The company received China Securities Regulatory Commission approval to sell 700 million yuan-denominated shares, Vanke said in a statement to Shenzhen's stock exchange today.
Vanke plans to sell the shares to biggest shareholder China Resources Holdings Ltd. and nine institutional investors, Vanke said on July 18. It will use the proceeds to build apartments in Beijing, Shanghai, Wuhan and other cities, the company, based in the southern city of Shenzhen, said.
Vanke is taking advantage of demand for Chinese stocks to raise money. The Shanghai and Shenzhen 300 Index, a benchmark for shares on China's two exchanges, surged 95 percent this year, the world's fifth-biggest gainer.
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