The recently named chairman of China Vanke Co. has stepped down from his position, delivering another setback to the struggling property developer that is grappling with cash flow difficulties.
Xin Jie, who assumed the chairman position during a sudden leadership restructuring in January, has submitted his resignation from multiple roles including the chairmanship, according to a regulatory filing the company made to the Hong Kong stock exchange. Xin cited personal reasons for his departure.
The company has also chosen Huang Liping, who serves as deputy party secretary and general manager at Shenzhen Metro, to take over as chairman. Huang has been a Vanke board member since 2021.
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This unexpected development may further complicate Vanke's prospects, as the company's finances are already strained with significant domestic debt obligations coming due. The developer has been depending on consistent financial backing from Shenzhen Metro Group Co., its primary state-controlled shareholder, where Xin served as chairman for eight years.
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The 59-year-old Xin built most of his professional experience within state enterprises in Shenzhen, a southern Chinese city. He obtained an engineering degree from a Shenyang university during the 1980s, a period when China's economic reforms were just beginning.
Following roles across various industries in Shenzhen, including international commerce and hospitality, Xin joined the municipal state construction company Shenzhen Tagen Group in 2009, eventually rising to chairman.
Since the end of 2017, Xin held the chairman position at Shenzhen Metro, the city's government-owned transportation company. Shortly before his appointment there, the firm acquired its stake as Vanke's primary shareholder following an intense corporate control dispute.
In January, Xin replaced Yu Liang as Vanke's chairman as the company faced mounting financial losses. The firm, previously China's top property developer, has emerged as a new focal point in the country's extended real estate downturn, highlighting the depth of the industry's troubles.
Vanke disclosed an 11.95 billion yuan deficit for the first six months, representing an increase from the previous year's loss. In August, Fitch Ratings reduced the company's long-term issuer rating to CCC-, indicating a continued deterioration in China Vanke's financial liquidity position.
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During this year, Shenzhen Metro provided several loans amounting to approximately 23.9 billion yuan, as detailed in Vanke's half-year financial report. These loans are specifically designated to assist Vanke in settling both principal amounts and interest payments on bonds issued to the public. In September, Vanke announced plans to obtain an additional loan of up to 2.06 billion yuan from Shenzhen Metro.