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China Daily Website

Wealth fund head to become chairman of CICC

Updated: 2013-05-17 07:45
By Wu Yiyao in Shanghai and Cai Xiao in Beijing ( China Daily)

Jin Liqun, chairman of the supervisory board of China Investment Corp - the country's sovereign wealth fund - will step down on Friday to assume the position of chairman of China International Capital Corp on Monday, Jin told China Daily on Thursday.

He is expected to succeed 64-year-old Li Jiange, who has been CICC's chairman since 2008.

Analysts said that Jin's decision to join CICC, the country's first joint venture investment bank and a leader in the financial services sector, may require the 64-year-old finance professional to come up with new strategies to boost the bank's performance.

"Jin has a wealth of experience acquired in international capital markets, and he has insights into global players in the investment banking sector," said Wang Jiayi, an analyst with the Shanghai-based Gaofu Investment Consultancy.

"His knowledge and expertise may help CICC develop its presence in overseas markets and boost CICC's cooperation with its international counterparts."

Jin, a capital markets veteran, may also face some pressure, as CICC - like its peers in the domestic and global markets - is having a hard time drumming up business as a sponsor for initial public offerings due to lackluster demand.

"Jin needs to lead the CICC team so that it develops more business channels and maintains a healthy net profit growth in the next few years, which is not an easy task for any player in today's market," said Yang Jing, a Beijing-based insider of the investment banking sector.

CICC went through some hard times in 2011 when it saw an about 70 percent year-on-year drop in net profit to 21 million yuan ($3.41 million).

In 2012, amid a more active bond market in China, its net profit rebounded to 280 million yuan.

However, compared with its net profit of 712 million yuan in 2010 and about 1 billion yuan in 2009, the company still has a long way to go. But considering the lack of IPO business opportunities in the first half of 2013, this year could turn out to be no easier than the past two years, said Yang.

CICC's business covers investment banking, capital markets, sales and trading, research, fixed income, asset management equity and wealth management.

Prior to his appointment at CIC, Jin served as the vice-president of the Asian Development Bank.

Before joining the ADB in August 2003, Jin was deputy minister of finance, director-general of the World Bank Department at the Ministry of Finance, and executive deputy director representing China at the World Bank Group.

He holds a master's degree from Beijing Foreign Studies University, and was a Hubert Humphrey Fellow in the Economics Graduate Program at Boston University.