Two major AMC executive changes in 1 month! China Huarong Wang Zhanfeng is at the helm of Oriental Assets, and Liu Zhengjun, deputy general manager of CITIC Group, is also in the role of Xinhuarong

There was a rotation of executives between AMC.

On the morning of April 20, China Orient Asset Management Co., Ltd. held a party committee, and Wang Zhanfeng, the former party secretary and chairman of China Huarong, was appointed as the secretary of the party committee of China Orient Assets and recommended the position of chairman of the board, thus replacing Wu Yue, the former chairman of China Orient Assets, who retired to the age.

Previously, on March 30, China Huarong held a meeting of leading cadres to announce the appointment and dismissal of the main responsible persons. The Party Committee of the Banking and Insurance Regulatory Commission decided to dismiss Wang Zhanfeng, secretary of the Party Committee of China Huarong, and proposed to remove the chairman and executive directors from their posts and appoint them separately. At the same time, the party committee of CITIC Group decided that Liu Zhengjun, member of the party committee and deputy general manager of CITIC Group, concurrently serves as the secretary of the party committee of China Huarong and recommends the nomination as the chairman of the board.

The 55-year-old Wang Zhanfeng has regulatory experience, and during his tenure as chairman of China Huarong, he pushed China Huarong to continue to "slim down" and return to its main business, and successfully led China Huarong to get rid of 100 billion yuan of huge losses in 2021 and achieve a turnaround.

China Orient Assets is also a central financial enterprise jointly established by the Ministry of Finance and the Council of Social Security Funds, one of the four major AMC, and as of the end of September 2021, the total assets of China Orient reached 1204.305 billion yuan.

After retiring, Wu Yue, the former chairman of China Orient Assets, is currently acting for Deng Zhiyi, the president of China Orient, who served as the director of the trust department of the former CBRC. This means that Wang Zhanfeng will work with Deng Zhiyi to continue to lead China's east forward.

Wang Zhanfeng once again took up his new position as an AMC executive

According to Caixin, on the morning of April 20, Orient Asset Management Company held a party committee meeting, and Wang Zhanfeng, former secretary of the party committee and chairman of China Huarong, was appointed as the secretary of the party committee of Oriental Assets and recommended the chairman of the board.

According to the data, Wang Zhanfeng, male, Han ethnicity, born in March 1967, Jilin Yushu people, graduated from Southwestern University of Finance and Economics, doctoral degree. Wang Zhanfeng joined the Audit supervision bureau of Chinese Min Bank in August 1991 and served as a member of the Party Committee and vice president of the Qingdao Central Branch of Chinese Min Bank, a member of the preparatory group, party committee member and deputy director of the Qingdao Supervision Bureau of the China Banking Regulatory Commission, deputy director of the Supervision Department of Cooperative Financial Institutions of the China Banking Regulatory Commission, secretary and director of the Party Committee of the Shanxi Banking Regulatory Bureau, and secretary and director of the Party Committee of the Guangdong Banking Regulatory Bureau.

In 2018, the Lai Xiaomin case broke out, shocking the outside world, and Wang Zhanfeng was ordered to be in a "crisis". In April 2018, Wang Zhanfeng officially joined China Huarong as the party secretary of the company, and became the chairman and executive director of the board in September of the same year.

In 2020, due to the risk assets caused by the aggressive operation and disorderly expansion of the former chairman Lai Xiaomin, which continued to be cleaned up and disposed of, coupled with the decline in the performance ability of some customers due to the new crown epidemic, which accelerated the deterioration of some asset quality, China Huarong confirmed asset impairment losses of up to 107.755 billion yuan, resulting in a net loss of 106.274 billion yuan in 2020 and a net loss attributable to the company's shareholders of 102.903 billion yuan.

During Wang Zhanfeng's tenure, he led China Huarong to continue to promote the process of returning to its main business and "slimming down", and successfully turned China Huarong into a profit in 2021.

According to the 2021 annual report released by China Huarong, the group achieved operating income of 93.1 billion yuan, an increase of 23.4% year-on-year; net profit of 1.986 billion yuan, and net profit attributable to the company's shareholders of 378 million yuan.

It is worth mentioning that on April 19, the Beijing Financial Assets Exchange disclosed that China Huarong intends to "liquidate" its 40.53% equity interest in Huarong Xiangjiang Bank and divest it from the banking license. Previously, China Huarong has transferred equity such as Huarong Securities and Huarong Consumer Finance to Guoxin Capital and Bank of Ningbo.

In March this year, at the China Huarong performance conference, Wang Zhanfeng said that China Huarong has continued to promote the slimming down of risks and accelerate the transformation of its main business in the past year, and has completed the equity transfer of 1 of its financial subsidiaries and the signing of transfer agreements of 2 of its financial subsidiaries, while the equity transfer of the remaining 5 companies is still advancing.

At the same time, the results announcement also showed that the Ministry of Finance has recently transferred 2.407 billion domestic shares (accounting for 3%) of China Huarong to CITIC Group, which has jumped to become the company's largest shareholder.

After the change of shareholders, China Huarong held a general meeting of leading cadres and announced the appointment and dismissal of the main responsible persons. The Party Committee of the Banking and Insurance Regulatory Commission decided to dismiss Wang Zhanfeng, secretary of the Party Committee of China Huarong, and proposed to remove the chairman and executive directors from their posts and appoint them separately. The Party Committee of CITIC Group decided that Liu Zhengjun, member of the Party Committee and deputy general manager of CITIC Group, concurrently serves as the Secretary of the Party Committee of China Huarong and recommends the nomination as the chairman of the board.

On April 1, China Huarong said in the announcement that since Wang Zhanfeng became the chairman of the company, he stressed politics, considered the overall situation, resisted pressure, faced difficulties, united and led all employees of the company to resolutely implement the decisions and deployments of the Party Central Committee, the State Council and higher-level departments, promoted the elimination of drugs and the construction of Xinhuarong as a whole, successfully introduced strategic investors, consolidated the foundation of sustainable development, and promoted the company to enter a new stage of transformation and development.

The announcement also said that during his tenure as chairman of the company, Wang Zhanfeng scrupulously fulfilled his duties, diligence and responsibility, reformed and innovated, and poured a lot of effort into the company's governance, board operation, strategic development, operation management, risk mitigation and other aspects, making outstanding contributions to the construction of high-quality Xinhuarong.

Intends to take the helm of trillions of oriental assets

Replacement of old and new. Wang Zhanfeng's move to China Orient Assets lies in the retirement of the former chairman of China Orient Assets.

On March 14, China Orient Asset Management announced that Wu Yue had resigned as chairman, executive director and chairman of the strategic development committee of the board of directors because he had reached retirement age. In order to ensure the normal progress of the company's work, the board of directors appointed the company's president Deng Zhiyi to act as chairman of the board of directors and chairman of the strategic development committee of the board of directors.

It is understood that Wu Yue and Wang Zhanfeng have similar resumes, both have experience in performing their duties in supervision, and Wu Yue served as the party secretary of China Orient Asset Limited Company in 2014. Previously, Wu Yue served as the former director of the Personnel Department of the China Banking Regulatory Commission, the director of the Organization Department of the Party Committee, the director of the Information Center of the China Banking Regulatory Commission, the former director of the Jilin Banking Regulatory Bureau, and the director of the Qingdao Banking Regulatory Bureau.

Deng Zhiyi, the current president of China Orient Asset, born in August 1965 in Shuangfeng County, Hunan Province, was the former director of the Shanxi Banking Regulatory Bureau and the director of the Hubei Banking Regulatory Bureau, the director of the Consumer Protection Bureau of the CHINA BANK in 2014, the director of the trust department of the former CBRC in 2015, and the president of China Orient Asset in August 2018.

According to the data, the predecessor of China Orient Asset Management Co., Ltd. was China Orient Asset Management Corporation, which was first jointly initiated by the Ministry of Finance and the National Social Security Fund Council.

In March this year, China Orient disclosed in the latest financial bond prospectus that as of the end of September 2021, the registered capital of China Orient was still 68.242 billion yuan, and the shareholding ratio of each shareholder was: 71.55% held by the Ministry of Finance, 16.39% held by the National Social Security Fund, 5.64% held by China Telecom, 4.4% held by Guoxin Capital, and 2.02% held by Shanghai Electric.

As of the end of 2020, China Orient's total assets were 1,141.829 billion yuan, total liabilities were 994.819 billion yuan, shareholders' equity was 147.010 billion yuan, and net profit in 2020 was 10.554 billion yuan.

In the first three quarters of 2021, China Orient Assets achieved a total operating income of 74.62 billion yuan and a net profit of 7.8 billion yuan.

As of the end of September 2021, China Orient's total assets reached 1,204.305 billion yuan, total liabilities reached 1,048.349 billion yuan, and shareholders' equity totaled 155.956 billion yuan.

Editor-in-charge: Gui Yanmin