Rejoice at the demise of a poorly motivated deal. Yesterday China Vanke, the developer listed in Hong Kong and Shenzhen, said it would not after all buy assets from Shenzhen Metro

in exchange for shares. The deal was touted in March as a means to ensure Vanke’s future growth. It was, rather, designed to bring a large, friendly shareholder on to the register to tip the balance in a battle for control.

Vanke has been caught in a takeover tussle since last year when companies affiliated with Baoneng, a privately owned insurer, began to build a stake now worth one quarter of the company. Although the largest shareholder, Baoneng’s position has been weakened. Last week China’s insurance regulator said it would lower the limit on equity investment by insurers from 40 to 30 per cent of their portfolios. Individual holdings cannot amount to more than 5 per cent, half the previous level. The intention of authorities, which have upbraided Baoneng for using leverage to buy into Vanke, is clear.