Property developer China Vanke expects to lose around Rmb45 billion ($6.2 billion) in 2024, according to a filing to the Hong Kong Stock Exchange (HKEX) on January 27.
The filing said the property giant is “experiencing temporary liquidity difficulties”.
Local and state governors in Shenzhen said through state media that they would “proactively support” the group according to The Business Times, suggesting the Chinese are keen to avoid the group going the same way as property giant Evergrande which went into liquidation in January last year.
Yu Liang decided to resign from the position as the chairman of the board due to “work adjustment reasons”.
Zhu Jiusheng has applied to resign from the positions as a director, a member of investment and decision-making committee of the board, the president and chief executive officer, and an authorised representative of the company due “to health reasons”, according to a statement. Zhu will no longer hold any positions in the company after his resignation
Xin Jie, chairman of Shenzhen Metro Group, Vanke’s largest shareholder and a state controlled entity, will step in as chairman of the board. The plan is to "accelerate the transformation of financial models, and to better promote the steady operation and sustainable development of the group" and to "spare no efforts in creating value for shareholders and society", the filing said.
China is trying to turnaround a much troubled property sector which has seen house prices fall, property companies go bust and the Chinese government trying to inject liquidity to prop up troubled loans.
