China Vanke, a major property developer, announced the resignation of chairman Yu Liang and CEO Zhu Jiusheng as it grapples with liquidity challenges and looming debt deadlines. Yu will remain as executive vice president, with three executives from Shenzhen state-owned firms joining the leadership team.

The company reported "temporary liquidity difficulties" and plans to focus on core operations while leveraging resources from its largest shareholder, Shenzhen Metro.

Vanke expects a Rs 513 billion (45 billion yuan) net loss for 2024, a sharp decline from its Rs 137 billion (12 billion yuan) net profit in 2023. The loss is attributed to reduced sales, profit margins, and impairments.

As Shenzhen Metro holds a 33% stake, its involvement is critical to Vanke’s recovery. However, analysts caution that Vanke’s troubles could undermine homebuyer confidence and tighten bank financing for the real estate sector.