Shenyin & Wanguo Securities is about to name a new president to replace Kan Zhidong, who was sacked for the brokerage's irregular share practices.
Wang Yuchun, deputy governor of the Shanghai branch of the Industrial and Commercial Bank of China (ICBC), will be appointed the new helmsman, pending approval from the brokerage's board.
ICBC is a major shareholder of Shenyin & Wanguo. ICBC Shanghai officials yesterday confirmed Mr Wang's departure and said he already had reported for duty at Shenyin & Wanguo.
Officials noted Mr Wang's presence at the mainland's biggest brokerage this week and said his appointment would be made on completion of relevant procedures.
Department chiefs were summoned to a working meeting tomorrow, during which they expect to meet the new boss.
The appointment came at the direction of the Shanghai municipal government. Analysts said it was not unreasonable, because most senior executives at former Shanghai Shenyin Securities - the predecessor of Shenyin & Wanguo - came from ICBC, including Kan Zhidong.
Analysts said the expected appointment of a banker to head a brokerage underscored the authorities' commitment to strengthening risk controls in the fledgling securities industry. The banking sector has a more mature regime than the securities sector.
