Vanke Executives to Buy $27.5 Million of Shares to Show Their Faith in Company
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China Vanke Co. Ltd. announced Tuesday that more than 1,800 key managers plan to buy company shares worth 200 million yuan ($27.5 million) in the next six months to stabilize investor confidence.
The pledge came as one of China’s largest developers warned of substantially widened losses in the first half of 2024 as the property crisis continues unabated.
Vanke said 1,862 key managers plan to use a total of 200 million yuan of their own money to increase their holdings in the company. Among them, 15 board directors and senior executives, along with the company’s Party Committee members, will contribute at least 73 million yuan, while the remaining 1,847 key management personnel will provide up to 127 million yuan, the company said in a statement.
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- Over 1,800 key managers of China Vanke, including senior executives, will buy 200 million yuan ($27.5 million) in company shares to boost investor confidence.
- Vanke is set to face a significant loss of 7 to 9 billion yuan in the first half of 2024, mainly due to high land purchase costs from 2021.
- The centralized land supply policy in 2021 led developers, including Vanke, to aggressively buy land, culminating in high costs and reduced profits as the real estate market declined.
- China Vanke Co. Ltd.
- China Vanke Co. Ltd., a major developer, announced that over 1,800 managers, including senior executives, will invest 200 million yuan to buy company shares, aiming to stabilize investor confidence. Facing substantial losses, Vanke expects a first-half loss of 7-9 billion yuan in 2024 due to high land costs and falling home prices. The company continues to focus on cash flow, restructuring, and risk resolution to overcome ongoing property market challenges.
- February 2021：
- The Ministry of Housing and Urban-Rural Development introduced a centralized land supply policy.
- 2021：
- Vanke bought 148 land lots for more than 140 billion yuan.
- 2021：
- The average land price for new projects rose by 3.46% year-on-year to 6,942 yuan per square meter.
- After July 2021：
- The real estate market entered a downward cycle, forcing Vanke to cut new home prices.
- From 2021 to 2023：
- The average price for Vanke’s new homes fell to 15,252 yuan per square meter from 16,487 yuan.
- The first quarter of 2024：
- Vanke reported a 362 million yuan loss.
- The first half of 2024：
- Vanke warned of substantially widened losses as the property crisis continues.
- The first half of 2024：
- Vanke expects to post a first-half loss of 7 billion yuan to 9 billion yuan.
- By Wednesday, July 10, 2024：
- Vanke’s Shenzhen-listed A shares closed at 6.65 yuan, down 0.89%.
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