Management reshuffle to shake out opponents of city reforms
Shenzhen has reshuffled more than 50 executives at about 10 state-owned enterprises (SOEs) as it implements restructuring plans.
In one of the most high-profile moves, He Yun became chairman and party secretary of stock trading company China Southern Securities. He was formerly president of Shenzhen Development Bank. Kan Zhidong, former chief executive of Shenyin & Wanguo Securities, becomes chief executive of China Southern.
The China Southern appointments come as a surprise because the company completed a leadership shake-up in March.
In other appointments, Guo Yuan, former general manager of China Southern, becomes deputy executive officer of Shenzhen Construction Holding Group, replacing Shao Xianghua, who becomes deputy director of Shenzhen State Assets Office.
Su Feng, chairman of Shenzhen Commercial Bank, becomes the boss of Shenzhen Development Bank. Mr Su's former post will be filled by a Shenzhen Finance Bureau deputy director.
Shenzhen's SOEs have been overshadowed by corruption scandals, debt and losses.
Last year saw unprecedented losses, with many firms turning in their first red ink. According to company reports, 16 SOEs together lost 7.3 billion yuan (about HK$6.84 billion), more than during the 1998 Asian financial crisis.
China Southern is believed to have lost heavily during the stock market slump last year but claimed a profit of 40 million yuan. The brokerage has yet to publish its financial statements for last year. An official at its auditor, Xinde Chartered Accountant, said a qualified report may be issued because the firm had too many reservations on China Southern's statements.
The overhaul was believed to be part of the city's plan to reform its troubled SOEs.
According to Zhong Jian, economics professor at Shenzhen University, a new reform proposal had been approved by Premier Zhu Rongji.
It is believed Shenzhen party boss Huang Liman has tried to accelerate state sector reforms since taking office late last year, in the face of strong resistance. The shake-up was intended to break up groups that had boycotted proposals to sell off state assets.
