(Yicai Global) Sept. 1 -- Onewo Space-Tech Service, the property management subsidiary of real estate giant China Vanke, has been given the go ahead by the Hong Kong bourse to go public in the Chinese financial hub.

Onewo, which was China’s top property management firm last year, has passed the Hong Kong stock exchange’s review, operator Hong Kong Exchanges and Clearing said today. The company has not yet indicated how much funds it intends to raise, it added.

The market valuation of property management firms listed in Hong Kong is not as high as before and Onewo might have missed the best opportunity to go public, some market insiders said.

“We do not care about short-term market capitalization but rather are eyeing long-term development with the support of the capital market and through business collaborations,” Vanke Chairman Yu Liang said at the earnings call yesterday.

Vanke owns a 57 percent stake in Onewo, which focuses on community space living services, commercial and urban space integrated services as well as artificial-intelligence-of-things and business-process-as-a-service solution services. Together with associated firms, it controls 63 percent of voting rights.

Onewo, formerly known as Vanke Property Management, held the biggest share of China’s property management market last year at 4.28 percent , according to US research and consulting firm Frost & Sullivan. It had 4,393 projects covering 780 million square meters under  management as of the end of 2021.

Onewo logged a 49 percent jump in revenue from its community space living services as well as commercial and urban space integrated services in the first quarter from the same period last year to CNY5.2 billion (USD752.8 million), accounting for 76 percent of total revenue, the Shenzhen-based company said in its prospectus. These two service sectors are expected to continue to make up a large share of overall earnings.

Vanke posted a 39 percent plunge in sales in the first half from the same period last year with sales of CNY215.3 billion (USD31.2 billion), but it still ranked second in the country.

Editor: Kim Taylor