With eyes still firmly fixed on J.P. Morgan in China following the recent princelings debacle, this week would seem an opportune time for a state-owned Chinese financial conglomerate to reveal some bad news of its own.
China Everbright Securities, one of the largest securities brokerages by assets in China, has accepted the resignation of its chief executive and president, Xu Haoming, following a “fat-finger” trading error, which caused chaos on the Shanghai stock market last week.
His departure was orchestrated by the China Securities Regulatory Commission, a sign that the regulator is taking a tough stance on brokerages, requiring them to strengthen internal controls while playing a stabilising force in a volatile market, according to the South China Morning Post.
But tougher regulations and enforcement following breaches will only go so far in helping to stabilise and modernise Chinese financial services. As we have mentioned before, banks in the PRC face a chronic shortage of compliance professionals, which is hampering their efforts to adhere to local and global regulations. Compliance officers, on the other hand, are getting their pick of multiple job offers and 25% pay raises, according to recruiters in Shanghai.
ECM bankers should consider heading Down Under as Australia braces for a slew of new listings. (Finance Asia)
As IPOs stay subdued in China, is it even worth hiring princelings? (WSJ)
Want to join a cashed-up employer?: Australian financial services firm IOOF sees profits surge by more than 300%. (Sydney Morning Herald)
Which Asian transaction bank really understands its customers? (Asian Banking & Finance)
Yes, investment bankers work the longest hours. (Financial News)
UBS is hiring as it splits its hedge fund business. (Bloomberg)