A management reshuffle at China Vanke that reinforced government support sent the developer's shares higher on Tuesday, as investors cheered the removal of near-term default risks and hoped it would bring some stability to the struggling property sector.

China Vanke Co. has been thrown a lifeline by state authorities, a rare show of support that signals the developer may be too big to fail even after dozens of property firms defaulted amid China’s punishing housing slump.

Support for Vanke could see banks extend loans, reduce discounts on asset sales and boost homebuyers’ confidence, CGS’ Raymond Cheng says.

Property developer China Vanke's Hong Kong shares firmed on Tuesday following a change of top management that reinforced government support for the company to contain its liquidity risks. State-backed China Vanke said on Monday that Chairman Yu Liang and CEO Zhu Jiusheng have stepped down,

China Vanke Co has received a lifeline by state authorities, a rare show of support that signals the developer is too big to fail even as dozens of property firms default amid China’s punishing housing slump.

Property developer China Vanke's Hong Kong-listed shares were set to open 8.7% higher on Tuesday following the announcement of a senior management change. China Vanke said on Monday that Chairman Yu Liang and CEO Zhu Jiusheng stepped down.