China Minsheng Bank chairman quits
China Minsheng Bank chairman of the board Dong Wenbiao resigned “due to other business arrangement[s]”, the bank said in a regulatory filing with the Hong Kong stock exchange late on Monday.
The filing did not expand on the factors surrounding the resignation of Dong, who had been with the bank since 1996. However, Chinese media reported that he had set up a private investment company while holding his position at Minsheng, the mainland’s first majority privately owned bank.
Dong took the chairmanship in 2006. According to company policy, a person may hold the position for up to nine years, cutting Dong’s leadership off in 2015, Erin Lee, a banks analyst at Yuanta Securities, pointed out.
“With the existing data on hand, it seems to me more like a natural position coming to maturity,” Lee said. “I don’t think this personnel change will negatively affect the bank too much or too long, given the group has already expressed that the bank will maintain its strategy unchanged going forward.”
A change in Minsheng’s share price on Dong’s resignation would likely be temporary, she added.
The resignation was announced after the close of trading on Monday.
In April, Chinese media CaixinOnline reported that Dong was building a private investment company that would facilitate overseas mergers and acquisition and invest in domestic infrastructure.
The filing said vice-chairman Hong Qi would replace Dong until a new chairman was elected.