Following the end of the Chinese New Year holiday, there has been another major shake-up in the leadership of real estate giant Vanke Group in China. A total of 10 executives from Shenzhen state-owned enterprises have taken over key positions. Prior to the Lunar New Year, Xie Jie, chairman of Shenzhen Metro Group, was appointed as chairman and legal representative of Vanke. Since then, Vanke’s management model has shifted from being led by “professional managers” to being deeply managed by state-owned assets.
According to a report by Caixin on February 6, on the afternoon of the 5th, Vanke announced an internal notice to appoint 10 new management personnel, with the public notice period from February 5th to February 7th.
Most of these personnel come from Shenzhen Metro Group, the largest shareholder of Vanke, or its subsidiary real estate companies, while some have previously worked for several companies directly or indirectly controlled by the Shenzhen State-owned Assets Supervision and Administration Commission.
These 10 individuals will hold senior management positions in Vanke, involving the three core departments of strategic investment and operation management, financial fund management, and development and operation business group. They will also oversee legal affairs, group offices, major functional departments, and two major regional companies in East China and Beijing.
According to a report by China Real Estate News on the 6th, Vanke released an internal document on the evening of the 5th, announcing the latest division of responsibilities for the management team. The new chairman of the board, Xie Jie, and executive vice presidents Li Feng, Hua Cui, Li Gang, all come from Shenzhen Metro Group or the Shenzhen state-owned assets system. Over 10 new senior executives in headquarters and regional core positions are all from state-owned backgrounds, including Zhao Zhengyang, general manager of the strategic investment and operation management department, and Xiao Jinghua, general manager of the financial fund management department.
Industry insiders speaking to Jiemian News stated, “With executives from Shenzhen state-owned backgrounds taking over from the board to mid-level functional departments, it signifies Vanke officially entering the era of ‘state-owned dominance.'”
On January 27th, Vanke announced that Zhu Jiusheng resigned from various positions within the company. Xie Liang stepped down from the position of chairman of the board and became an executive vice president. Zhu Xu resigned from the position of company secretary, among others.
Xie Jie, the Party Secretary and Chairman of Shenzhen Metro Group, was appointed as chairman of Vanke, with the legal representative of Vanke changed from Xie Liang to Xie Jie. Xie Liang, Li Feng, Hua Cui, and Li Gang serve as executive vice presidents of the company, while Tian Jun serves as company secretary of the board.
On the same day, Vanke’s financial results showed an expected net loss of about 45 billion yuan (RMB) attributable to shareholders of the listed company in 2024, compared to a profit of 12.163 billion yuan in the same period last year, representing a 370% decrease. According to data from JPMorgan, Vanke has 33 billion yuan in bonds maturing this year.
China Real Estate News reported that Vanke’s financial crisis was the catalyst for this personnel adjustment.
The Wall Street Journal reported on February 3 that as private and local developers are increasingly facing difficulties, the real estate industry in China is becoming more dominated by state-owned enterprises. This marks a significant reversal for an industry that has long been a model for China’s economic development.