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New breed of manager to power the markets

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A NEW breed of senior managers is taking the top positions in the latest glamour stocks to power mainland and local markets.

Beijing Enterprises vice-president Fang Fang is indicative of the changes reshaping board rooms on the mainland.

Mr Fang has an engineering degree, a master's degree in business administration from the United States and has experience as an investment banker for Merrill Lynch in New York.

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Investment experts say the musty smell of political hacks and party cadres is being replaced by a new generation of executives. They also say international financial experience may be just as important as asset injections to determine a stock's long-term value.

Hong Kong's Seapower Asset Management Company director of corporate strategy Thomas Tsao Gai-tei said: 'Instead of just looking at the [stock] price, look at the actual people in the companies.' HSBC Asset Management director Chung Wing-man said rumours and expectations had been the price-drivers in mainland-connected stocks, but as the companies matured 'this sort of mystery' would be less important and management would make the difference.

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This does not mean investors should ignore basics such as profit and price-earnings ratios when deciding where to put their money.

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