Significant Leadership Changes at Vanke: Shenzhen State-Owned Assets Take Control of Several Core Positions (AI Translation)
Listen to the full version
文｜财新 陈博
By Chen Bo, Caixin
【财新网】深圳国资决定接手正面临流动性危机的万科集团（000002.SZ/02202.HK，下称“万科”）。春节假期结束后，后续工作迅速推进。据财新了解，2月5日下午，万科发布内部公示，拟任命十名新的经营管理人员，公示期为2月5日至2月7日。
[Caixin Net] Shenzhen state-owned assets have decided to step in to assist Vanke Group (000002.SZ/02202.HK, hereinafter referred to as "Vanke"), which is currently facing a liquidity crisis. Following the conclusion of the Chinese New Year holiday, subsequent efforts have progressed swiftly. Caixin has learned that on the afternoon of February 5, Vanke issued an internal notice proposing the appointment of ten new executive management personnel, with the notice period spanning from February 5 to February 7.
其中多数人员来自万科第一大股东深圳地铁集团（下称“深铁”）或其旗下房地产等子公司，亦有部分人士此前任职于深圳国资委直接或间接控股的多家公司。
Most of these personnel hail from Shenzhen Metro Group (referred to as "Shentie"), the largest shareholder of Vanke, or its various real estate and subsidiary companies. Additionally, some individuals previously held positions at multiple companies directly or indirectly controlled by the Shenzhen SASAC.
十名人员均在中高层管理岗履新，岗位范围涉及万科总部层面的战略投资运营管理部（下称“战投部”）、财务资金管理部和开发经营事业集团等三大核心部门，法务部、集团办公室等主要职能部门，以及华东与北京等两大主要区域公司。这些人员的教育背景、工作履历和专业能力与新职位基本匹配。
All ten personnel have taken on new roles in mid-to-senior management positions across key departments at Vanke's headquarters. These departments include the Strategic Investment Operations Management Department (referred to as the "Strategic Investment Department"), Finance and Funds Management Department, and the Development and Operations Business Group. Additionally, they will be involved in major functional departments like the Legal Affairs Department and the Group Office, as well as two primary regional companies, East China and Beijing. Their educational backgrounds, work experience, and professional skills are generally well-suited to their new positions.
- DIGEST HUB
Digest Hub
Back
- Shenzhen state-owned assets are intervening to assist Vanke Group amid a liquidity crisis, with key personnel from Shenzhen Metro and other state-backed entities appointed to executive roles at Vanke.
- Vanke's structure has shifted significantly, with a new executive team led by Xin Jie and reshuffled responsibilities, reflecting increased state control and efforts to stabilize the company.
- Faced with financial challenges, including a significant projected net loss and bond maturities, Vanke is seeking substantial external liquidity support, potentially impacting its market mechanisms and strategic decisions.
The Shenzhen state-owned assets have stepped in to support Vanke Group as it faces a liquidity crisis, initiated by appointing new executive management personnel primarily from Shenzhen Metro Group, the largest shareholder of Vanke, or its subsidiaries. The appointments involve ten individuals transitioning into mid-to-senior management roles in departments such as Strategic Investment Operations Management, Finance, and others. These appointments align with cadre management guidelines and have been approved through appropriate procedures. [para. 1]
As part of restructuring, Vanke saw Yu Liang resign as Chairman but continue as Executive Vice President. Xin Jie, from Shenzhen Metro, was elected Chairman, while several others, including Vanke's President Zhu Jiansheng and Board Secretary Zhu Xu, resigned from their roles, with replacements coming from Shenzhen state-owned enterprises. [para. 2]
Feb 5 marked further internal notifications clarifying the division of duties among the new executives. The involvement of the Shenzhen State-owned Assets Supervision has induced an early reshuffle, deviating from the regular three-year board cycle. [para. 3]
The reshuffling has resulted in Xin Jie assuming total operational oversight at Vanke, while other appointed executives like Li Feng and Hua Cui manage key operational and functional areas. New roles involving historical issue resolutions concerning Bosom Asset Management and Peng Jin Platform are also highlighted. These platforms, reportedly outside of Vanke’s listed company system, are rumored to have facilitated financial maneuvers and shadow banking activities, raising moral hazard concerns. [para. 4]
Shenzhen Metro's share acquisition concluded a "Baowan dispute" in 2017, following which Vanke sought to balance state-owned and market mechanisms, handled by professional managers. The heightened presence of executives from Shenzhen's state assets supervision now strengthens its control over Vanke's operations, marking a significant power shift. [para. 5]
Key personnel placements at Vanke's headquarters involve Shenzhen state-owned assets' executives assuming managerial roles in central departments like Strategic Investment and Finance. The Strategic Investment Department, closely tied to Vanke's past growth, continues its critical role in strategy and investments under state-led management. [para. 6]
Vanke's real estate operations, managed through a structure of major regional companies, has also seen appointments from Shenzhen-owned entities, solidifying state control across regions. Despite no immediate changes to original department chiefs, state assets influence is expected to grow, altering decision-making dynamics at Vanke. [para. 7]
Vanke faces a severe dual crisis in operations and finances, with a projected 2024 net loss marking its first annual loss since becoming public. The company's impending bond repayments worsen its liquidity crisis, needing an estimated 100 billion yuan external support. Recent unusual bond price movements signal rising investor concern. [para. 9][para. 10]
State involvement could stabilize market confidence, particularly with banks reaffirming commitments to support Vanke financially. However, long-term implications on Vanke's market-oriented operations remain a concern, with immediate survival overshadowing future competitiveness. [para. 11][para. 12]
- Vanke Group
- Vanke Group is facing a liquidity crisis, with Shenzhen's state-owned assets stepping in for support. A new high-level management team has been appointed, mostly from Vanke's largest shareholder, Shenzhen Metro. Vanke reported an expected net loss of 45 billion yuan for 2024, its first annual loss. The company requires about 100 billion yuan in liquidity support. State intervention aims to stabilize Vanke's operations and enhance market confidence.
- Shenzhen Metro Group
- Shenzhen Metro Group is the largest shareholder of Vanke Group and has been involved in addressing Vanke's liquidity crisis. They have appointed key personnel to Vanke's management, including its chairman, and oversee important departments. Shenzhen Metro's involvement signifies increased control and stabilization efforts for Vanke, as they try to balance state and market-driven mechanisms.
- Tagen Group
- Tagen Group is part of Shenzhen's state-owned entities, with Li Feng, a director at Shenzhen Tagen Group Co., Ltd., being appointed as an executive vice president at Vanke. The group is actively involved in Vanke's restructuring, alongside other Shenzhen state-owned companies, as part of a strategic intervention led by Shenzhen Metro Group to address Vanke's ongoing liquidity crisis.
- Shenzhen Building Materials Trading Group
- Shenzhen Building Materials Trading Group is mentioned as the company where Hua Cui serves as the chairman of the board. Hua Cui has been appointed as one of the executive vice presidents of Vanke, overseeing multiple headquarters functional departments such as the Group Office, Human Resources, and the Audit Supervision Department.
- Shenzhen Metro Commercial Management Co., Ltd.
- Shenzhen Metro Commercial Management Co., Ltd. is associated with Shenzhen's state-owned assets. Its Party Secretary and Chairman, Li Gang, has been assigned as an Executive Vice President at Vanke, overseeing Vanke's diversified business sectors. This indicates the company's role in the strategic management of urban commercial assets and its involvement in broader oversight and business integration at Vanke amid its current restructuring.
- Shenzhen Investment Holdings Co., Ltd.
- Shenzhen Investment Holdings Co., Ltd. is involved in Vanke's restructuring. The company has appointed Tian Jun, a professional independent director from Shenzhen Investment Holdings Co., Ltd., Shenzhen Capital Group Co., Ltd., as Vanke's new board secretary. Shenzhen Investment Holdings is a part of Shenzhen's state-owned assets, indicating its significant role in state-led interventions and management within the region.
- Shenzhen Capital Group
- The article does not mention Shenzhen Capital Group directly. However, it refers to Shenzhen State-owned Assets, which includes companies like Shenzhen Metro Group and others involved in real estate and finance that are currently managing Vanke Group's restructuring process due to its liquidity crisis.
- China Resources Land
- China Resources Land is briefly mentioned in the article as a former shareholder of Vanke. In 2017, Shenzhen Metro Group, representing Shenzhen state-owned assets, acquired Vanke shares from China Resources Land and another company, ending a previous conflict known as the "Baowan dispute." This acquisition shifted control and governance dynamics within Vanke.
- China Evergrande Group
- The article mentions that Shenzhen Metro acquired shares of Vanke from China Evergrande Group and CR Land, ending the "Baowan dispute." Evergrande is indirectly referenced as a prior shareholder of Vanke before Shenzhen Metro's involvement.
- Shenzhen Asset Management Co., Ltd.
- Shenzhen Asset Management Co., Ltd. has been involved in Vanke's restructuring by appointing its deputy general manager, Zhao Zhengyang, as the general manager of Vanke's Strategic Investment Operations Management Department. This positions the company within Vanke's headquarters (Vanke's core departments), emphasizing Shenzhen's control over important functional roles essential for managing Vanke's finances and strategic investments.
- Guangzhou Tagen Xingye Real Estate Development Co., Ltd.
- Guangzhou Tagen Xingye Real Estate Development Co., Ltd. is managed by Chen Wu, who has been appointed as the General Manager of Vanke’s East China Regional Management Department. The company is mentioned in the context of personnel changes as Shenzhen's state-owned capital increases its control over Vanke amid its financial crisis.
- Shenzhen Metro Property Group
- Shenzhen Metro Property Group, a significant subsidiary under Shenzhen Metro Group, is a key player in the property sector. Several members from this group or its sub-companies have been appointed to top management positions at Vanke to address its liquidity crisis. This move signifies enhanced control and influence by Shenzhen State-owned Assets over Vanke, aiming to stabilize and revitalize the company's operations during its current financial challenges.
- As of September 2024：
- Vanke's parent company held approximately 1.189 billion yuan in cash, marking a net outflow of about 5.931 billion yuan since the end of June 2024.
- Starting from December 18, 2024：
- Investor anxiety towards Vanke rose, with several of the company's domestic and foreign bonds experiencing unusual price movements.
- January 27, 2025：
- Vanke held a board meeting where several resolutions were passed, leading to significant changes in the company's executive team. Yu Liang resigned as Chairman of the Board, and Xin Jie was elected as Chairman. Vanke's President Zhu Jiansheng and Board Secretary Zhu Xu resigned from their positions.
- After the Chinese New Year holiday in 2025：
- Shenzhen state-owned assets decided to assist Vanke, and subsequent efforts progressed swiftly.
- February 5, 2025：
- Vanke issued an internal notice proposing the appointment of ten new executive management personnel. The new executive management personnel were nominated and selected according to relevant guidelines for cadre management work.
- Evening of February 5, 2025：
- Vanke issued an internal notice clarifying the division of duties for the new executive team.
- PODCAST
- MOST POPULAR
Sign in with Google
Sign in with Facebook
Sign in with 财新