China Vanke Forecasts $6.2 Billion Loss, Replaces Top Executives

China Vanke, one of China’s largest property developers, said on Monday that its top executives were stepping down and warned of a $6.2 billion loss for 2024, the latest sign that China’s grueling multiyear property downturn has not reached the bottom.In a filing in Hong Kong, Vanke said that its chairman, Yu Liang, would leave his post for “work adjustment reasons.” Zhu Jiusheng, the chief executive, would resign “due to health reasons,” the company said.The changes mark an effort by the local government to take greater control of the management of Vanke.Vanke’s new chairman will be Xin Jie, the head of its biggest shareholder, an entity owned by the government of Shenzhen, where the developer is based.Vanke will also get three new executives from state-owned firms, according to the company, which added that it was undergoing “temporary liquidity difficulties.” Mr.

Yu will stay on as an executive vice president.In a separate filing, the company said it expected that it lost $6.2 billion last year, in part, because of plunging sales.Financial experts have grown increasingly concerned about Vanke’s financial problems in recent months after it reported a $2.5 billion quarterly loss in October and started to warn about its ability to repay creditors.Last week, S&P Global and Fitch, two ratings firms, downgraded their outlooks for the company, citing worries over its ability to generate cash to make its debt payments as its sales slowed dramatically.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access.

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