The Shanghai municipal government will soon unveil a reshuffle of senior personnel at its Hong Kong-listed flagship companies, according to sources. Two younger executives with backgrounds in investment banking were likely to be elevated to top jobs at red-chip Shanghai Industrial Holdings and Growth Enterprise Market-listed SIIC Medical Science & Technology (SIIC MedTech). Shanghai Industrial will be joining a string of red chips - mainland-backed firms incorporated and listed in Hong Kong - that have put investment banking veterans in key positions to improve internal management. Shanghai Industrial, with holdings from consumer products and car parts to infrastructure and information technology, is the overseas investment vehicle of the Shanghai government and one of the first red chips to list on the Hong Kong main board. A Shanghai Industrial official confirmed that the Shanghai government was due to make the changes 'by the Lunar New Year at the latest'. The Lunar New Year falls on February 12. He declined to comment on the details of the changes, citing continuing discussions. The Shanghai government, the Hong Kong Economic Times (HKET) reported yesterday, was considering promoting Donald Lu Mingfang, Shanghai Industrial assistant president and general manager of its finance and planning department, to the post of chief executive officer, replacing outgoing Zhuo Fumin. Li Weida would pass the torch of SIIC MedTech managing director to Zhou Jie. The story added that Cai Laixing was to remain chairman of Shanghai Industrial to maintain continuity. The Shanghai Industrial official said Mr Zhuo was also expected to retain important posts at the company. The personnel changes were the result of 'expiring tenures and normal job rotations', he said. Red-chip companies routinely rotate management in Hong Kong to prevent officials from being entrenched in their positions. Most of Shanghai Industrial's top executives have been in place since 1995, head of corporate communications Derek Fung said. He added: 'A younger and better professionally honed management team is the going trend of a lot of reshuffles. Ours is to fall in line with this trend.' Top posts at red chips, especially government window companies, usually go to government officials. Before his stint with Shanghai Industrial, Mr Zhuo, 50, headed the Shanghai municipal office for enterprise restructuring. Mr Lu, 44, if appointed, would represent a departure from the tradition. He has held down investment banking jobs with Shanghai Wanguo Securities and had no official titles before joining Shanghai Industrial in 1995. Mr Zhou had a similar background, said HKET. Analysts hail the reported reshuffle as a positive move. One analyst said the changes were being made at a 'sensitive time', with the recent departure of Xu Kuangdi, Shanghai's outspoken mayor of six years.