FILE PHOTO: Sign of Vanke is seen at a construction site in Shanghai. Photo: Reuters/Aly Song

China Vanke and Chairman Wang Shi will step down from the board in the upcoming election, the company said on Wednesday, after a year-long corporate power struggle at the nation’s No 2 property developer.

A shareholder meeting to elect new board members would be held on June 30, and the company said it had nominated three senior executives of major shareholder Shenzhen Metro as non-executive directors.

The state-owned subway operator’s control over Vanke was affirmed earlier this month after its stake surpassed financial conglomerate Baoneng Group, which had sought to oust Vanke’s management.

“I have decided not to be re-elected as Vanke’s director since the beginning of the discussion of a new board,” Wang said in his blog.

“Today, I’m handing the leadership to [President] Yu Liang, I believe it’s the best timing. They are younger, but mature enough.”

As of 0147 GMT, shares of Vanke in Hong Kong had gained 0.5%, while its counterparts in Shenzhen were up 0.8%. The boarder market was down 0.7&%.

Vanke said in late March the make-up of the new board was still being negotiated by various parties, even though the term of the current board has officially expired on the 27th of the month.