(Bloomberg) -- China Vanke Co. plans to spin off and list its property management business in Hong Kong in a test of investor demand for real estate firms.
The proposal was approved by the company's board on Friday, according to a statement to the Hong Kong stock exchange. The unit was established in 2001, it said.
Shares in Vanke, the nation's largest listed residential developer, this week fell to a five-year low in Shenzhen amid a rout in property shares.
Bloomberg reported in April that Vanke was working with an adviser to prepare for such a listing that could raise about $2 billion, according to people with knowledge of the matter. Vanke would join other Chinese developers such as China Resources Land Ltd. and Country Garden Holdings Co. in spinning off their management units.
Property management and related services were Vanke's second-largest revenue generator after property sales. The business contributed 15.4 billion yuan ($2.4 billion), equivalent to about 3.7% of the developer's total revenue in 2020, according to its annual report.
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