Haitong puts CEO’s global ambition on the back burner as it reins in Hong Kong unit after US$840 million blowout
- Haitong’s parent wants to “regain its glory” by creating “one Haitong,” the chief executive said in an interview
- Haitong International, due to release its results next week, may post a 2022 loss of US$841 million, according to its earnings warning last month
Haitong Securities plans to revamp its Hong Kong investment bank, halting an expansion after the firm posted unprecedented losses last year.
The Shanghai-based parent sent a working group to review operations as part of a push to help Haitong International Securities Group recover, according to Lin Yong, the chief executive officer of the Hong Kong-listed unit.
The parent company wants the firm to “regain its glory,” Lin said in an interview on Tuesday. Part of that plan will be to create “one Haitong” that brings all the businesses together and connects Hong Kong and mainland teams, the executive said.
Haitong International last month said it expected to post a loss of as much as HK$6.6 billion (US$841 million) for 2022 amid volatile markets. Part of that was due to a shortfall of HK$3.4 billion from equity and debt investments in the secondary market and a HK$1.7 billion loss in private debt and equity investments. The firm is officially releasing annual results next week.
Lin, the long-time CEO, has held ambitions to grow Haitong International into a global investment bank. The firm will now halt any expansion of its investment business due to the losses, he said.