Shares in one of China’s largest brokers plunged yesterday after it admitted that its joint chairman and chief executive had gone awol for five days.
Guotai Junan Securities’ shares tumbled 12 per cent in Hong Kong after it said that it had been unable to contact Yim Fung since last Wednesday. The mystery surrounding the 52-year-old – who was known as Yan Feng in China – raised fears that he may be in police detention as part of a widespread investigation into alleged stock market corruption which Beijing launched in the wake of China’s share collapse.
Mr Yim has been in his current job since 2012 and had spoken out publicly on issues such as allowing China to access overseas capital markets and linking the Hong Kong and Shanghai stock markets. He will be temporarily replaced by Qi Haiying as acting chairman and Wang Dongqing as acting chief executive officer. Ronald Wan, at Partners Capital International in Hong Kong, warned: “Investors will be concerned … It will also affect sentiment over the brokerage industry as a whole.”
Beijing last week said it was investigating Yao Gang, a former vice-chairman of China Securities Regulatory Commission, who was suspected of serious violations of discipline. This comes five months after Guotai Junan listed in Shanghai in the biggest float for five years, raising 30.1bn yuan (£3.1bn).
At least 16 people have been arrested or are being investigated across the industry as part of the authorities’ stock market crackdown. Those under investigation include Xu Xiang, known as “Hedge Fund Brother No 1” for his fortunate timing and his top performance among Chinese fund managers.
