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Shares of China Vanke Co Ltd, the country's biggest residential developer, plunged in Hong Kong on Monday, over a report that two major shareholders of Vanke have asked for an extraordinary general meeting (EGM) to seek approval to remove founder and chairman Wang Shi and 11 other directors from the board.
Vanke stocks fell nearly 5 percent during intraday trading, and it managed to bounce back slightly and close at HK$ 16.04 ($2.07) for midday closing, down by 3.95 percent.

On June 24, the company received a notice from Shenzhen Jushenghua Co Ltd, and Foresea Life Insurance Co Ltd, units of Vanke's current largest shareholder Baoneng Group. The two investors together hold 24.29 percent of Vanke's total issued share capital.

Vanke's plan to buy assets from State-owned Shenzhen Metro Group Co Ltd, by issuing new shares to the latter, and potentially make it the largest shareholder, has faced strong opposition from Baoneng, who said the deal would dilute the interests of current shareholders. It said Vanke's board isn't representing shareholders' interest in a balanced way.

Besides, the proposal said Chairman Wang studied abroad in the United States and the United Kingdom from 2011 to 2014. He had been out of work for a long time, but still got cash rewards for more than 50 million yuan ($7.58 million) from Vanke, which harmed the interests of the company and investors.

The property giant said in a statement on Sunday to Hong Kong stock exchange that it will hold a board meeting within 10 days from receiving the request, to decide whether to convene an EGM.