Mass exodus at ChinaAMC
09 May 2012
News, Asia, China
By Hui Ching-hoo, David Macfarlane and Maya Ando
Three of China Asset Management Co Ltd’s (ChinaAMC’s) independent directors, Wang Lianzhou, Long Tao, and Tu Jian, have quit the company, according to Mainland electronic financial media platform Hexun.
Reports of the directors’ exits follow hot on the heels of frenzied speculation from several Mainland media outlets last week claiming the company’s CEO and President, Fan Yonghong, had relinquished his role. Purportedly, Teng Tianming, deputy general manager at ChinaAMC, will assume Mr. Fan’s position at the helm of China’s largest fund house.
Asia Asset Management previously reported that one of its sources in Shanghai had claimed the rumours about Mr. Fan’s exit were true, although ChinaAMC declined from commenting when approached by an AAM correspondent. The China Securities Regulatory Commission (CSRC) has also been silent on the subject.
The news of Mr. Fan's decision to step down followed on from Mainland media reports the week before claiming the firm’s famous fund manager Wang Yawei had quit as deputy general manager. At the time, Caixin Online quoted market sources as saying that Mr. Wang may move to the National Council for Social Security Fund (NCSSF) to oversee the investment of the social pension fund. This coincides with the NCSSF’s plans to increase its exposure to equity assets.
ChinaAMC released an official statement earlier this week confirming the buzz – Mr. Wang Yawei has stepped down as deputy general manager, it announced. According to local press, he decided to leave the firm due to excessive media exposure.
With Mr. Fan at the helm since its founding in 1998, ChinaAMC had RMB 224.7 billion (US$35.2 billion) in assets at the end of 2010 and a market share of 10%. The firm was one of the first nation-wide fund management companies to be approved by the CSRC. Headquartered in Beijing, ChinaAMC has branches in Beijing, Shanghai, Nanjing, Shenzhen, Guangzhou, Chengdu and Hangzhou, and a subsidiary in Hong Kong. As of September 30, 2011, the company had distributed RMB72.1 billion worth of dividends to its investors accumulatively, of which there are 16 million.
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