Baoneng Group faces the forced liquidation¹ of its investment in China Vanke unless it can meet impending² margin³ calls on its borrowing — in a demonstration⁴ of the risk of using leverage⁵ to build a stake for a hostile bid.

宝能集团(Baoneng Group)对万科(China Vanke)的投资面临被迫变现，除非它能满足迫在眉睫的追加贷款保证金要求。这展示了利用杠杆积累股权、实施敌意收购的风险。

In recent weeks, Baoneng’s fight for control of Vanke, China’s largest residential⁶ developer, has fascinated the country’s financial community. Vanke chairman Wang Shi had previously⁷ branded the private owners of Baoneng “barbarians⁸”, warning that a takeover by them would wreck⁹ Vanke’s corporate¹⁰ culture.

最近几周，宝能对中国最大住宅开发商万科控制权的争夺，紧紧抓住了中国金融界的注意力。万科董事长王石此前称，宝能的私人所有者为“野蛮人”，警告被其收购将毁掉万科的企业文化。

Yesterday, Vanke sent a letter to regulators alleging¹¹ a wide range of violations¹² related to Baoneng’s use of structured debt vehicles to finance its stakebuilding in its target.

昨日，万科向多家监管部门提交了一份报告，指称宝能使用结构型债务工具积累万科股份的做法存在多项违规。

Vanke’s Shenzhen-listed shares fell 1.8 per cent yesterday and are down 30 per cent since they resumed trading this month following a suspension that began on December 19.

昨日，万科在深圳的股价下跌了1.8%，自本月复牌以来累计下跌30%。之前万科股票在去年12月19日开始停牌。

Regardless of whether regulators act on Vanke’s allegations, the fall in its share price could force Baoneng — which owns 25 per cent of Vanke and is the developer’s largest shareholder¹³ — to dump some of its holding in order to repay the debt that it used to acquire it.

无论监管部门是否对万科的指控采取行动，万科股价下跌都可能迫使持有其25%股份的最大股东宝能抛售部分万科股票，以偿还用以收购万科股票的债务。

Baoneng has used bank loans and sales of high-yielding wealth management products by its life insurance unit to acquire its Vanke stake.

宝能在收购万科股票时使用了银行贷款，并通过旗下寿险公司发行高收益理财产品。

Last month, Huang Qifan, the powerful mayor of Chongqing, called for the government to examine how privately¹⁴ owned Baoneng raised the funds.

上月，影响力很大的重庆市市长黄奇帆呼吁政府对私有的宝能集团的融资途径进行调查。

A Baoneng unit, Shenzhen Jushenghua, acquired Rmb21.6bn ($3.2bn) worth of Vanke shares through nine different structured asset management plans created by several securities and fund management companies, according to the letter.

万科报告称，宝能旗下的深圳钜盛华(Jushenghua)通过几家券商和基金公司创建的9个不同的结构型资产管理计划，收购了价值216亿元人民币（合32亿美元）的万科股票。

Vanke’s criticism of Baoneng’s debt financing alludes¹⁵ to concerns over shadow banking¹⁶. China’s stock market boom and bust¹⁷ last year was fuelled in part by borrowing from non-bank lenders — shadow banks — to fund stock purchases. Once prices began to fall, margin calls on the loans created a vicious cycle of lower prices and forced liquidation.

万科对宝能债务融资的批评，提及了影子银行引起的担忧。去年中国股市的大涨大跌，在一定程度上得到了利用非银行贷款机构——影子银行——的贷款购买股票做法的助推。一旦股价下跌，追加保证金的要求引发了股价下跌和被迫变现的恶性循环。

“Small- and medium-sized investors¹⁸, media and the public have expressed tremendous worry about whether Jushenghua’s high-leverage funding chain can continue, whether it will cause Vanke’s A-share price to drop off a cliff, and whether we will see a reappearance of the stock market disaster that led to systemic and herd-behaviour risk in 2015,” Vanke wrote.

万科报告称，“中小股东、媒体、社会公众对于钜盛华的高杠杆资金链能否持续，是否会引发万科A股股价断崖式下跌，是否会再现2015年股灾期间二级市场系统性踩踏风险，表示了极大顾虑。”

Jushenghua’s vehicles used a 2:1 leverage ratio typical of structured asset management plans.

钜盛华的融资工具使用了常见于结构型资管计划的2:1的杠杆。

Banks bought the senior tranches worth two-thirds of the total value, while Jushenghua put up the final third, comprising the subordinate tranche.

银行作为优先级份额持有人，买入了这些资管产品总价值的三分之二，钜盛华作为劣后级份额持有人，持有其余的三分之一。

To protect the senior tranche-holders against losses, the plans require asset managers to liquidate¹⁹ shares if Vanke’s stock price falls 20 per cent — unless the subordinate tranche-holder injects additional cash into the fund.

为保护优先级份额持有人不受损失，资管计划要求资产管理公司在万科股价下跌20%的情况下卖出万科股票——除非劣后级份额持有人注入更多资金。

Baoneng and Jushenghua did not respond to requests for comment.

宝能和钜盛华没有回应记者的置评请求。