Vanke Draws Attention Again: Consortium Acquires Land in Zhengzhou, Wang Shi Vows to "Do Everything Possible to Ensure a Smooth Transition for Vanke"

Vanke has acquired land in Zhengzhou.

The transfer of a plot of land for an urban village renovation project in the Central China District of Zhengzhou has attracted market attention. On May 28, the Vanke consortium won the bid for the aforementioned project at a base price of 528 million yuan. The land area of the plot is 26,845.4 m², with a planned construction area of 134,227 m², and a transaction floor price of 3,934 yuan/m².

The entity acquiring the land is Henan Guoxin Leda Real Estate Co., Ltd. Shareholder structure reveals that Zhengzhou Vanke holds a 50% stake in the company, with the remaining shares held by Henan Guoxin Real Estate and Henan Haoduojin Trading Co., Ltd.

This is a rare instance of Vanke investing in land acquisition after announcing its proactive implementation of a "package" of measures to advance reforms, mitigate risks, and achieve integrated development.

Why did Vanke choose to acquire land in this area of Zhengzhou? Industry insiders believe that Vanke's land acquisition may be related to its need to appropriately supplement high-quality inventory.

Industry insiders point out that this move is driven by both strategic considerations of leveraging policy dividends for urban renewal and the practical logic of corporate bailouts and sustained operations.

"The plot is located in the core area of Zhengzhou's old city, with mature surrounding facilities, providing inherent conditions for the construction of high-quality projects," Zhang Bo, President of the 58 Anjuke Research Institute, told reporters. At the policy level, Zhengzhou provides combined "land + finance" support for urban village renovation projects, effectively alleviating corporate financial pressure through methods such as staggered land payment installments and floor area ratio incentives.

Liang Botao, General Manager of the Henan branch of the China Index Academy, told reporters that the plot is designated for urban renewal and was originally planned as the third phase of Vanke's Shanhedao project. The first two phases achieved good sales performance, and Vanke has accumulated favorable operational experience in this area, giving it strong confidence in the development of the new plot. Additionally, Vanke's overall operations in Zhengzhou have been stable, with cumulative sales in the first four months maintaining its position at 4th on Zhengzhou's sales list. The steady performance of the city company also supports its continued land acquisition and deepening presence.

In terms of funding, Vanke has cleverly dispersed the financial pressure of land acquisition through equity cooperation with partners.

"For the 528 million yuan land payment, Vanke actually only contributed 264 million yuan, representing a relatively low proportion of its 2025 land acquisition budget. Meanwhile, the previously invested funds of partner Henan Guoxin are guaranteed, further reducing Vanke's capital investment intensity. Moreover, Vanke's cooperation with Henan Guoxin and other parties on complex issues such as demolition compensation and villager resettlement involved in urban village renovation has also effectively reduced the risks associated with project advancement," Zhang Bo said.

Notably, just one day before Vanke's land acquisition in Zhengzhou, the proactive statement made by the company's Honorary Chairman Wang Shi became a hot topic of concern among various parties, sparking multiple market speculations.

Recently, Wang Shi published a lengthy post on his personal WeChat Moments. In the post, Wang Shi mentioned that he was attempting to establish smooth communication with the decision-making body of Vanke, doing everything in his power to ensure a smooth transition for Vanke and safeguard the well-being of its vast number of investors, partners, and 130,000 employees.

The industry holds diverse views on Wang Shi's recent statement.

"The outside world has long harbored various speculations and concerns about the relationship between Wang Shi and Vanke, Vanke's equity structure, as well as Wang Shi's personal choices. Wang Shi's post at this juncture might be an attempt to respond to these external voices, clarify some misunderstandings, convey his genuine thoughts and attitudes to the public, investors, employees, and other stakeholders, and prevent unnecessary rumors and speculations from affecting Vanke's normal development," Bo Wenxi, Chief Economist for the China Region at the China Enterprise Capital Union, told reporters.

In the view of Li Yujia, Chief Researcher at the Guangdong Provincial Housing Policy Research Center, after Shenzhen Metro took over Vanke, there has been a growing clarity in understanding Vanke's original and distinctive governance structure and its implications. This structure was formulated by Wang Shi, the then leader of Vanke. If Wang Shi were to step in, it could help further clarify the situation and potentially offer better solutions.

"Over the past 40 years since Vanke's establishment, Wang Shi has left a profound personal imprint, exerting significant influence over Vanke from its headquarters to regional, city, and even project levels. This holds great significance for resolving Vanke's current predicaments, uniting the new management team, enhancing the effectiveness of the new management's governance, and addressing historical legacy issues," Li Yujia stated.

Bo Wenxi also believes that Wang Shi may be a key figure in resolving Vanke's current issues. Wang Shi has accumulated extensive connections and broad social influence in the business, academic, and philanthropic sectors.

"He can leverage these resources to act as a bridge for Vanke, facilitating cooperation and exchanges between Vanke and other enterprises and institutions, bringing more resources and opportunities to Vanke, such as providing support in project cooperation, technological innovation, talent cultivation, and other areas, thereby helping Vanke expand its business scope and enhance its competitiveness," Bo Wenxi said.