Advertisement
China's state-backed property developer Vanke announced that its chairman, Xin Jie, has stepped down from his position, and board member Huang Liping has been appointed as his successor. The change in leadership led to a short-term decline in the company's Hong Kong and Shenzhen share prices. Xin's resignation came less than a year after his appointment, during a period when the company continues to face weak sales and high debt obligations. Vanke recently reported a half-year loss of 12 billion yuan, reflecting the ongoing stress in China's property sector.
China Vanke, one of the country's largest property developers, said that its chairman, Xin Jie, has resigned. The announcement was made through a filing on the Hong Kong Stock Exchange. Following the update, Vanke's Hong Kong-listed shares fell by about 6.3 percent in early trading before recovering slightly to close around 2.9 percent lower. Its Shenzhen-listed stock also dropped by about 4.1 percent before easing losses to end roughly 2.1 percent down. Advertisement
The company confirmed that Huang Liping, who has been a board director since June 2021, will take over as chairman. Huang is also the general manager of Shenzhen Metro, Vanke's largest shareholder, which owns about one-third of the developer's equity.
In his resignation letter, Xin mentioned that he had no disagreements with the board and that there were no pending matters to be shared with shareholders. Vanke also clarified that Xin did not hold any shares in the company at the time of his resignation.
Xin had been appointed chairman earlier this year, taking over during a period when the company was managing debt repayments and slowing property sales. Before joining Vanke, he served as chairman of Shenzhen Metro. His appointment had been viewed as part of efforts to strengthen coordination between the developer and its state-owned shareholder amid rising financial pressures.
Earlier this year, both Vanke's former chairman and chief executive had resigned, which led to Xin's appointment. His short tenure highlights the ongoing challenges the company faces in maintaining leadership stability and addressing liquidity issues.
Vanke reported a half-year loss of 12 billion yuan (around USD 1.6 billion) in August. To ease funding pressures, Shenzhen Metro has extended several loans totaling tens of billions of yuan to help the developer manage debt repayments and maintain operations.
The broader market sentiment also remained weak. The Hang Seng Index declined by around 1.9 percent on the same day, reflecting continued caution among investors toward China's property sector. Analysts noted that the management change could help maintain coordination with the company's main shareholder while providing continuity during a difficult period for the industry.
Source Reuters
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
