Everbright Securities shakes up its senior ranks for failing to adhere to China’s austerity drive

Everbright Securities’ Chairman Yan Jun and supervisory committee chairman Liu Jiping stepped down, according to the brokerage’s statement

Four other executives were reprimanded Sina.com reported

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The sign of Everbright Securities in Shanghai on August 19, 2013. Photo: AP

Published: 12:15pm, 20 Apr 2022Updated: 5:06pm, 20 Apr 2022

Everbright Securities shook up its senior management amid media reports of the brokerage being under government investigation for extravagance, a move that sent shares of the brokerages plunging on the Hong Kong and Shanghai exchanges.

The Shanghai-based broker’s chairman Yan Jun resigned, Everbright said in a stock exchange statement, citing unspecified “work adjustments.” Liu Jiping stepped down as chairman of the broker’s supervisory committee on the same day, Everbright said without elaborating.

Yan and Liu were the top executives in a shake-up at Everbright, involving six senior managers, according to a report on Sina.com that did not cite a source. Executives Liu Qiuming, Fan Hongbo, Wang Zhong, Mei Jian were reprimanded, Sina.com reported without elaborating.

The surprise reshuffle at the senior echelons of one of China’s largest brokerages came hot on the heels of the unexpected removal this week of Tian Huiyu as president and director of China Merchants Bank, amid reports of unspecified investigations.

Everbright Securities chairman Yan Jun. Photo: Handout

Everbright’s shares fell by almost 4 per cent to HK$5.10 in Hong Kong, dropping 4.1 per cent to 11.85 yuan in Shanghai on Wednesday. The brokerage did not disclose information about the remaining senior executives apart from Yan and Liu, and did not respond to requests for comment.

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