(Yicai Global) Aug. 17 -- Evergrande Real Estate has named a new chairman to replace Hui Ka Yan, who is also founder and chairman of parent firm China Evergrande Group, as the embattled property development group takes steps to distance core executives from its highly indebted flagship real estate business on the mainland.

Zhao Changlong, who was executive director, vice chairman and general manager of sister firm Evergrande Property Services, will also take over the role of GM, formerly held by Ke Peng, who is also vice president of China Evergrande, according to the National Enterprise Credit Information Publicity System.

Considering the current debt scale, Evergrande Real Estate's executives might be blacklisted if a partial default occurs, a legal and financial expert told Yicai Global. As Hui and Ke are also core executives at parent firm China Evergrande, their departure might help avoid any chain reactions.

The shift in senior management does not involve any changes to the company’s management structure or equity, Beijing Daily reported, citing a company insider. The move is not unusual, since Hui took the reins at Evergrande Real Estate in 2017 to plan its listing on the Shenzhen stock exchange, which has since been dropped.

China Evergrande, the country’s biggest real estate developer, has been grappling with mounting debts brought on by overaggressive expansion and is under great pressure by regulators to reduce its debt burden as they rein in excessive borrowing in the real estate sector. Struggling to meet its debts, the group is currently embroiled in a number of lawsuits involving unpaid fees.

Editors: Tang Shihua, Kim Taylor