(Yicai) Nov. 19 -- More than 20 Chinese builders have changed their chairpersons over the past six months, with deep adjustments in the real estate market leading to company chiefs needing to adapt to new situations and enhance capabilities, according to industry insiders.

State-owned developer Bright Real Estate Group was the latest to announce a chairperson change, with the Shanghai-based company appointing Wang Wei to replace retiring Lu Jimin on Nov. 14.

Other builders to replace their chairpersons included China Merchants Shekou Industrial Zone Holdings, CCCC Real Estate, Overseas Chinese Town Asia Holdings, and other medium and large-sized state-owned firms, as well as troubled developers that have undergone debt restructuring, like Jinke Property Group and other well-known large companies facing financial difficulties, such as China Vanke.

Along with standard changes due to retirees, the recent replacement of chairpersons at many builders reflects that firms must reshape the capabilities of their managers due to the industry entering a new development stage, Liu Shui, director of corporate research at China Index Academy, told Yicai.

Developers need to change the past business model of chasing land acquisition, scale expansion, and high leverage with high turnover, Liu said. New chiefs need to be better able to grasp economic cycles and long-term trends, pay attention to financial security, and have the ability to build a sound financial management system, Liu added.

In addition, companies need new leaders due to the industry shifting from large-scale development to refined operation and asset-light models, including construction and property management, Liu pointed out.

The direct pressure to improve operating performance is also an important reason for developers to replace their leaders, Liu noted, adding that firms have generally faced pressure from declining performance since 2022, with more than 60 percent of listed builders incurring first-half losses this year.

The entire real estate market has experienced deep adjustments for several years, which have had a profound impact on the sales and profits of firms, so they must adjust their business model, said Yan Yuejin, vice president of Shanghai E-House Real Estate Research Institute.

"Companies need to adjust their organizational structure and senior management personnel to adapt to the new market situation and thus gain greater market competitiveness," Yan said. "In addition to adjusting regional market or key business line leaders, it may also be necessary to introduce talents with comprehensive management experience from outside."

The current real estate market poses great challenges to managers, so the requirements for their professional and strategic adjustment capabilities are higher than ever, according to Yan. New senior executives need to have better market direction judgment, product strength, marketing skills, digital capabilities, and the ability to promote business transformation, Yan stressed.

The total earnings of the chairpersons at the 78 listed developers in Shenzhen and Shanghai fell 16 percent to CNY69.4 million (USD9.8 million) last year from the previous year amid an overall downturn in the real estate market, according to data from Wind Information.

Editors: Tang Shihua, Martin Kadiev