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,

New chairman’s state-linked background sends positive signals, but company’s fate still depends on a sales recovery, an analyst says.

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.