Source of this article: Times Weekly Author: Feng Qijuan
Changes in senior executives of securities firms are nothing new. If the personnel adjustment can recruit talents with strong resource background to join us to help solve problems and revitalize the situation, everyone will be happy.
html On February 25, Guoyuan Securities successively issued multiple announcements on executive personnel changes. Chen Xin, who had served as vice president for 10 years and "righted it up" for only two years, resigned as president due to personal reasons. Also resigning with Chen Xin was Vice President Yu Qiang. Former vice president Shen Hefu, who had been transferred for two years, returned with a bang and took over as president.It should be pointed out that Shen Hefu has 20 years of experience in Guoyuan Securities. "After two years of external transfer, Shen Hefu already has comprehensive resources and background in investment banking, investment, compliance, risk control, etc. This is crucial for Guoyuan Securities today, and it is also the main reason why Guoyuan Securities chose Shen Hefu ." An industry insider close to Guoyuan Securities told a reporter from Times Weekly.
In the two years since Chen Xin took the helm of Guoyuan Securities, the drastic reforms did not seem to have brought Guoyuan Securities out of the development dilemma of small and medium-sized securities companies. Business compliance issues have become increasingly prominent, the development of the asset management business has been weak, and negative news has been lingering.
At a time of many difficulties, how will Shen Hefu, who has been entrusted with the important task, lead Guoyuan Securities out of the predicament?
20-year-old veteran returns, Chen Xin may switch to private equity
According to the announcement, Chen Xin resigned as director and president on February 24 due to personal reasons. On the same day, Yu Qiang applied to resign from his position as vice president due to work adjustments. Chen Xin and Yu Qiang do not directly hold Guoyuan Securities shares. After resigning, the two men did not hold any positions in the company or its holding subsidiaries.
Chen Xin’s term was supposed to end on January 14, 2023, and he served as president for only two years. Yu Qiang has only been serving as vice president for a year and a half.
There is another news that Yu Qiang resigned to adjust the work within the group and will be appointed as the president of Guoyuan Trust, a member company of Guoyuan Financial Holdings Group. Just on February 22, Guoyuan Financial Holdings Group, the largest shareholder of Guoyuan Securities, held a pre-appointment talk for middle-level managers. At the meeting, Party Secretary and Chairman Fang Xu said: “This cadre adjustment and appointment is the result of the group party committee fully considering the cadre structure, job vacancies and work needs of Guoyuan Securities and Guoyuan Trust, from further promoting cadre exchanges, strengthening echelon allocation, etc. Starting from all aspects and after extensive solicitation of opinions, the group party committee meeting made a prudent decision after deliberation."
As for Chen Xin’s future, former employees who have worked at Guoyuan Securities for many years told Times Weekly reporters that Chen Xin will not work in the “Guoyuan Department” and may move to private equity next.
At the latest board meeting of Guoyuan Securities, the resolution was unanimously reviewed and approved, agreeing to appoint Shen Hefu as the new president. The term will end on the expiration date of the ninth board of directors, that is, January 14, 2023.
's new appointment is more like "returning to his parents' home" for the 20-year veteran. As early as 2001, Shen Hefu, who was born in law, joined Guoyuan Securities and began to serve as vice president in 2014.
At the end of 2019, due to internal adjustments within the group, Shen Hefu resigned from his position as vice president of Guoyuan Securities and served as Secretary of the Party Committee and Chairman of Guoyuan Investment from January 2020. According to Times Weekly reporters, at the theoretical study meeting of the Guoyuan Investment Party Committee held on January 21, Shen and Fu still presided over the meeting as party committee secretary and chairman.
After two years of external transfer, Shen Hefu turned around and returned to Guoyuan Securities. He was directly promoted from the original vice president to the president, and directly became the top management leader. The reason is closely related to his comprehensive business background and 20 years of excellent work experience in the securities industry.
Comprehensive background becomes the key to success
As soon as the news came out that Shen Hefu would return to Guoyuan Securities and serve as president, people in the industry gave positive feedback. It is generally believed in the industry that the combined background of investment banking, investment, compliance and risk control has become an important bonus for Shen and Fu to become presidents.
Shen and Fu graduated from Southwestern University of Political Science and Law and are qualified as lawyers. He has successively served as a clerk in the legal department and assistant manager of the general manager office of China Anhui International Economic and Technical Cooperation Corporation, deputy director of the legal advisory office of Anhui Trust and Investment Company, and also served as director of the legal affairs department, compliance director and vice president of Guoyuan Securities.
In 2014, when he first served as vice president of Guoyuan Securities, Shen and Fu began to take charge of investment banking and bond business "cross-border". Subsequently, Shen and Fu were in charge of these two businesses for nearly 6 years. While
was in charge of investment banking business , Shen Hefu led the investment banking team to complete 18 A-share IPO projects for Guoyuan Securities, with a market share of 1.34%; as the lead underwriter, he completed 36 additional issuance projects, with a market share of 1.34%. 1.56%; as a financial consultant, he completed 19 additional issuance projects, with a market share of 1.62%.
Based on this, Guoyuan Securities spoke highly of Shen Hefu in its resignation announcement two years ago, "leading the business team to complete a number of equity and debt financings and listing companies on the New OTC Market; helping a number of state-owned enterprises complete mixed reform, It serves the real economy in a diversified manner with the "investment banking + investment" business model; it has established and cultivated an investment banking team, and its investment banking business has taken the lead in achieving the "Thirteenth Five-Year Plan Goals".
At the end of 2019, Shen Hefu bid farewell to Guoyuan Securities and became the chairman of Guoyuan Investment. He began to engage in investment management, pawn guarantees, small loans, financial leasing and other businesses.
In fact, Shen Hefu’s comprehensive capabilities correspond to Guoyuan Securities’ development pain points that urgently need to be solved—frequent business compliance issues and lagging development of asset management business.
There is a long way to go
In 2021, Guoyuan Securities has been plagued by negative consequences, falling into successive compliance incidents and encountering regulatory penalties. In July, October and November 2021, Guoyuan Securities received warning letters from the securities regulatory authorities due to violations of regulations and dereliction of duty by business department personnel, obvious problems in research reports, and irregular operation of asset management products.
It is worth mentioning that Guoyuan Securities has been pushed to the forefront due to its "insurance but not recommendation" and the issue of interest transfer during the recommendation process. By the end of 2021, Guoyuan Securities was questioned by a financial media in Shanghai one after another. The IPO projects it sponsored showed a change in performance after listing, and the related investment platform lurked to take shares in the IPO projects sponsored by investment banks and other issues.
In mid-2021, Guoyuan Securities was not on the two batches of brokerage whitelists announced by the China Securities Regulatory Commission. Regarding the failure to be included in the whitelist, Guoyuan Securities pointed out that the main problem is that the company's risk management system does not cover all subsidiaries.
At almost the same time, the list of securities firms for the second batch of fund investment advisory pilot projects, which attracted great attention from the market, was announced one after another. Guoyuan Securities was not shortlisted. Anhui local securities firm and Huaan Securities , which are often compared, successfully won the fund investment advisory pilot. Obviously, Guoyuan Securities is one step behind this time.
It is reported that Guoyuan Securities submitted the application document in May 2020. The reason why it missed out on the investment advisory pilot project is that the company's classification rating results in the past three years included two BBBs.
According to the 2021 semi-annual report, Guoyuan Securities’ asset management business revenue has declined significantly, and its asset management scale has been cut in half. In 2020, its asset management business performed similarly weakly compared to other business sectors.
Currently, a number of securities firms have firmly grasped the pulse of "big wealth management" and strive to be at the forefront of asset management. Obviously, Guoyuan Securities has not kept up with the big army.
Shen Hefu, who is making a comeback, has a heavy responsibility on his shoulders. However, for Guoyuan Securities, which is currently facing many difficulties, it is obviously not easy to break through the difficulties.
