Top Chinese banker steps down after ‘broker butcher’ brother becomes chief market regulator

Wu Bo, who has worked at the large Chinese investment bank for nearly two decades, is the younger brother of Wu Qing, who was appointed chairman of the China Securities Regulatory Commission in February, according to people familiar with the matter. 

The CSRC oversees all of China’s brokerages, including CICC, and regulates the country’s $9 trillion stock market and a wide range of capital-markets activities. Having the siblings at their respective posts could create a conflict of interest, said the people, who asked not to be identified discussing internal matters.

The CSRC and CICC didn’t immediately respond to requests for comment. 

Wu Bo, 46, has held various roles at CICC and was just appointed the firm’s chief financial officer and president in late 2023. He has also been a member of the firm’s management committee for the past six years. Prior to CICC, he worked as an auditor for accounting firms including PricewaterhouseCoopers Zhong Tian LLP. 

Beijing-based CICC said in a regulatory filing on Wednesday evening that “due to work changes,” Wu Bo is no longer serving in his executive roles. Chairman Chen Liang would take over Wu’s president duties until a replacement is named, and another executive will serve as CFO temporarily, the bank added. 

“Mr. Wu Bo has dedicated to his work and fulfilled his duties diligently during his term of office,” CICC said. It also thanked him for what it said were his significant contributions to the company’s development. 

Wu Qing, who turns 59 this month, also recently joined the People’s Bank of China’s monetary policy committee. The official, who earned the reputation as “the broker butcher” from his crackdown on securities firms in mid-2000s, has had a heavy hand in trying to stabilize the world’s second largest stock market after three straight years of losses. 

He has so far pledged to beef up oversight of initial public offerings, crack down on fraud and act to fix “market failures” in extreme cases. The benchmark CSI 300 index has gained almost 5% since he took office.

CICC last month reported 6.16 billion yuan ($851 million) in profit for 2023, down 19% from the previous year. Its total revenue and other income dropped 5% to 35.45 billion yuan. The state-owned financial institution said investment banking revenue for the industry was pressured last year because of a drop in fund raising from IPOs and follow-on share sales. Brokerage revenues also declined last year because of the broader stock market’s lackluster performance. 

The bank has been pushing more austerity measures, and has slashed bankers’ pay and bonuses to better align itself with Chinese President Xi Jinping’s push for “common prosperity.”