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The chairman of Vanke resigned after serving only nine months in the position, the struggling Chinese property developer announced today. Xin Jie submitted his resignation to the board on September 12, citing personal reasons, and officially stepped down from all roles at the company the following day, based in Shenzhen.
The 59-year-old Xin has been the chairman of Shenzhen Metro Group, Vanke’s largest shareholder, since September 2017, and has held senior roles within various state-owned enterprises in Shenzhen for many years. In January, he took on the additional role of Vanke’s chairman.
He will be succeeded by board member Huang Liping, who has served as general manager of Shenzhen Metro since February 2021, although no further details were provided about the leadership transition.
Earlier this year, Xin and his Shenzhen Metro team, responsible for constructing and operating the Shenzhen subway system, took full control of Vanke’s daily operations as the property developer continued to struggle with debt repayment. During Xin’s tenure, Vanke underwent a major restructuring of its executive team and management hierarchy.
Shenzhen Metro took control of Vanke in 2015 to ward off a potential hostile takeover by external investors. Initially, it did not involve itself in the company’s daily management, but as Vanke’s debt issues grew more severe, Shenzhen Metro began taking a more active role by providing financial support through shareholder loans, asset transfers, and other measures.
In just the first nine months of the year, Shenzhen Metro extended CNY 25.9 billion (approximately USD 3.6 billion) in loans to Vanke to help cover maturing debts and ease financial pressure.
Despite this support, Vanke’s performance remained weak. The company reported losses of CNY 11.9 billion (about USD 1.6 billion) in the first half of the year, with revenue dropping 26.2 percent year-over-year to CNY 105.3 billion (around USD 14.7 billion). From January to September, sales fell more than 40 percent year-over-year, reaching CNY 100.2 billion.
As of June 30, Vanke’s short-term borrowings and liabilities due within a year totaled CNY 157.8 billion (nearly USD 22.1 billion), while cash reserves declined by 16.1 percent since the start of the year to just CNY 74 billion (about USD 10.3 billion), highlighting a significant funding shortfall.
Vanke’s stock price declined today, ending lower in both Shenzhen and Hong Kong markets. In Shenzhen, shares fell 2.6 percent to CNY 6.57 (USD 0.92), and in Hong Kong, they dropped 3.2 percent to HKD 5.04 (USD 0.65).
Overall market indices also declined amid renewed concerns about a potential US-China trade war. The Shenzhen Component Index closed 0.9 percent lower at 13,231.47, while the Hong Kong Hang Seng Index dropped 1.5 percent to 25,889.48.
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