(Yicai Global) Aug. 19 -- The share price of China Merchants Shekou Industrial Zone Holdings climbed after the company announced that it has replaced retiring chairman Sun Chengming by General Manager Xu Yongjun who will be tasked with reducing the firm's reliance on real estate development while increasing its income from industrial parks and cruise businesses.

CMSK's [SHE: 001979] share price rose 5.3 percent to CNY20.5 (USD2.90) this morning.  

Xu has taken up the reins as Sun retired after 14 years of service, the Shenzhen-based unit of state-owned China Merchants Group said in a statement yesterday.

Xu will face a mission that has been pending for years. According to a plan released in 2017, CMSK will reduce its income from real estate development to 60 percent from 85 percent. That of its industrial park operations should increase to 30 percent from 15 percent while the company's cruise business should also grow. However, last year, real estate development still made up 89 percent of the firm's total revenue of CNY88.3 billion (USD12.5 billion).

In December 2015, Xu became the GM when CMSK and China Merchants Property Development merged to diversify their businesses. The company went public during the same month. Before that, Xu served as marketing director and deputy general manager during his 15 years at China Merchants's logistics unit.

Sun helped CMSK to restructure, get listed, as well as maintain business growth, according to the statement. Sun was the chairman of CMPD before the merger.

Editor: Dou Shicong