China Vanke Faces $6.2 Billion Loss and Leadership Shake-Up

The state-backed developer signals recovery efforts as it grapples with debt, market downturn, and executive resignations.

China Vanke, one of China's largest property developers, has projected a record net loss of $6.2 billion for 2024 due to declining sales, lower profit margins, and asset impairments.
The company has undergone a significant leadership reshuffle, with CEO Zhu Jiusheng resigning and Chairman Yu Liang stepping down from his role, though Yu will remain as an executive director.
Zhu Jiusheng's resignation follows unconfirmed reports of his detention by public security authorities, though the company has attributed his departure to health reasons.
State-owned Shenzhen Metro Group, Vanke's largest shareholder, has taken a stronger role in the company, with its chairman, Xin Jie, appointed as Vanke's new chairman, signaling increased state oversight.
Vanke's bonds have seen a surge in value following government pledges of proactive support, raising investor confidence that the developer will avoid collapse despite China's broader real estate crisis.