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 stock surged following a management reshuffle, raising hopes for government support, though liquidity concerns persist amid the property slump.

By Clare Jim HONG KONG (Reuters) -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.

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