After six months of vacancy and five months of open recruitment, ChengTong Securities has appointed 47-year-old investment banking veteran Xi Rui as its new general manager. Concurrently, another executive change saw Shen Hao, who assumed the role of deputy general manager in August, also taking over as board secretary following the departure of Qin Hao. Qin’s exit marks the final departure of senior executives from the pre-restructuring era of New Times Securities, now rebranded as ChengTong Securities.
In 2022, following regulatory intervention and market-driven restructuring, New Times Securities was acquired by China Chengtong Group and renamed ChengTong Securities. This transition concluded the risk resolution process for the troubled brokerage, integrating it into China’s state-owned capital operation system. The takeover infused the firm with substantial capital and credibility while aligning its strategy with Chengtong’s broader capital management objectives.
Despite a revenue and profit rebound in H1 2024—driven by market recovery—ChengTong’s overall performance remains in recovery mode, with challenges ahead to regain historical highs or establish steady growth.
**Leadership Reshuffle: A New Era Begins** The appointment follows the June 2024 exit of former general manager Ye Shunde, who had steered the firm through its transition from New Times Securities. Xi Rui, the new appointee, brings extensive investment banking experience from Orient Securities (600958.SH), Citi Orient Securities, and Shenwan Hongyuan (06806.HK). His hiring raises questions about ChengTong’s plans to revitalize its underperforming investment banking division, which reported net fee income of just 5.71 million yuan in 2024.
Meanwhile, Shen Hao’s dual role as deputy GM and board secretary underscores ongoing restructuring efforts. The firm has actively recruited talent in 2024, with plans to hire 105 employees nationwide, targeting key divisions like investment banking and asset management.
**Challenges: Talent Influx vs. Attrition** Despite recruitment drives, ChengTong has seen a net loss of 90 employees in 2024, per Securities Association data. Analysts attribute this to post-acquisition cultural shifts and strategic realignment under Chengtong’s “state-capital-focused” mandate.
**Performance: Market-Led Recovery Under Scrutiny** H1 2024 revenue rose 4.17% YoY to 915 million yuan, with net profit up 20.28% to 218 million yuan. Brokerage and proprietary trading drove growth, while investment banking and asset management lagged. However, the firm’s growth trails the industry average (23.47% revenue growth sector-wide).
Xi Rui faces dual pressures: delivering short-term results while executing long-term strategic overhauls. Success hinges on leveraging Chengtong’s state-backed resources to secure deals in IPO and restructuring—key to sustaining growth amid market volatility.
*Note: Performance data sourced from ChengTong Securities’ 2025 interim bond report.*