Insiders revealed that Shanxi Securities has decided to choose Jiang Peixing to replace Wang Zhonghe. In contrast, in 2010, the total remuneration actually paid to senior executives who obtained the approval of the CSRC in Zhongde Securities was as high as 282.7 million yuan, while the corresponding remuneration total of UBS Securities was only 93.1 million yuan during the same period. But another undeniable fact is that compared to the original investment banking team of Shanxi Securities, Fei Xiang and other outsiders are still a minority. Statistics show that excluding the parent company of CITIC Securities (12.36, 0.00, 0.00%) co-underwriting, the underwriting fee rate of Zhongde Securities for other 6 SME stocks was about 4.65%, lower than the market level of 4.66% during the same period. However, Wang Zhonghe's aforementioned response did not stop the speculation about his departure. In nearly 2 years since its establishment, Zhongde Securities has been trying to replenish fresh blood for its investment banking team. Deutsche Bank no longer wants to continue either. It can be foreseen that the departure of Fei Xiang or even Wang Zhonghe will completely change the existing power balance between Chinese and foreign shareholders of Zhongde Securities. At the shareholder level, the person in charge of the board office of Shanxi Securities replied that the company has not yet received any official report on this matter; the spokesperson of Deutsche Bank directly stated: "We do not comment on market rumors." In fact, although Zhongde Securities looks "beautiful", what it can actually contribute to the shareholders is very limited. Before the establishment of the joint venture securities company, the ranking of stock main underwriting amount and quantity of the investment banking department of Shanxi Securities was only ranked 32nd and 36th respectively, but by 2010, the ranking of the joint venture Zhongde Securities in terms of main underwriting amount and quantity had risen to 17th and 21st respectively. The issue is that the domestic shareholder, Shanxi Securities, wants more; the reason is also clear, among the projects completed by Zhongde Securities, almost all of them come from the resource accumulation of Shanxi Securities. Those who work more should earn more, so Shanxi Securities is also justified. In March this year, the market once reported that Zhongde Securities was looking for a new CEO. Several informed persons from Zhongde Securities' clients and peers in the securities industry then revealed the details of this event to the reporter. On June 13, Wang Zhonghe said on the phone: "No comment, I am still working." This would have been simple, referring to the equity ratio, there is no doubt that Shanxi Securities and DB will settle the division according to the 2:1 ratio. Understanding shows that at that time, the recruitment was entirely led unilaterally by the Chinese shareholder of Zhongde Securities, Shanxi Securities, and the candidates were also in direct contact with Shanxi Securities; and the entire recruitment process was relatively confidential, even in the beginning, Wang Zhonghe himself was isolated from this information. However, in the last week of March, everything took a turn. Jiang himself is also a seasoned investment banker, serving as the president assistant of Galaxy Securities from 2000 to 2004; in 2005, he served as the president of CMB International Capital Corporation Limited; his latest position was the deputy administrative president of CCBI (Holdings) Company Limited. Just two months later, the rumor of leaving again came; this time, the rumor was more substantial. Wind data statistics show that from the restart in June 2009 to the end of 2010, Zhongde Securities accumulated IPO sponsorship and underwriting revenue of 306 million yuan, second only to China International Capital Corporation among joint venture securities companies; in addition, Zhongde Securities completed 7 bond issues in 2010, including the first subordinated debt issued by a commercial bank, Hua Xia Bank's 4.4 billion yuan subordinated debt. "The official statement is that Fei Xiang is on vacation; but he has determined to leave, and his specific destination is still unknown," the source introduced. The available information shows that the investment banking department led by Fei Xiang has achieved remarkable results in the past two years. Who would have thought that half a year later, Fei Xiang would resolutely leave? This goes back to the start, when Shanxi Securities quietly started the recruitment for the CEO of Zhongde in March this year. Despite some twists and turns along the way, they eventually found a satisfactory candidate. In the face of customer pressure, Shanxi Securities had to compromise. On March 30, Wang Zhonghe visited several key customers and promised to set aside the aforementioned disputes, confirming his reappointment. When asked about the rumors of his resignation, Wang Zhonghe refused to comment, citing the old adage "those involved are often blind." Why does this happen? Facing customer pressure, Shanxi Securities had to give in. On March 30, Wang Zhonghe visited several important customers and assured them that he would remain in his position. Upon learning that he was about to be "forced out," Wang Zhonghe was extremely angry and decided to take the initiative, releasing news that he was about to leave Zhongde; this information quickly garnered responses from customers, many of whom expressed their support and requested Wang Zhonghe to stay. There are already multiple versions circulating about Wang Zhonghe's possible resignation, and now the widely accepted version is that after his contract with Zhongde Securities expires, Wang may choose not to renew it. Similar to Wang Zhonghe, Fei Xiang is also a representative of the foreign shareholder, Deutsche Bank, in Zhongde Securities. After experiencing multiple rumors of resignation, it seems that the Chief Executive Officer of Zhongde Securities, Wang Zhonghe, is truly nearing the time to leave. Once Wang Zhonghe confirms his departure, it will undoubtedly become the latest casualty in the struggle for control in joint venture securities firms. On March 31, the reporter sought confirmation from Wang Zhonghe himself regarding the aforementioned rumors. "I haven't heard anything at all," Wang said at the time, even joking with the reporter, "You can tell them not to come, I'm still in this position." Public records show that when Zhongde Securities was established in July 2009, the company chairman was concurrently held by Hou Wei, the president of Shanxi Securities, while the CEO was appointed to Wang Zhonghe, managing director of Deutsche Bank and head of the Investment Banking Division in China. This is also the common executive model in previous joint venture securities firms. However, the appointment of Fei Xiang, director of the China Institutional Client Department of Deutsche Bank, as the head of the investment banking department was quickly interpreted by the industry as the foreign shareholder taking the dominant position in the operation of the joint venture. In 2010, after Zhou Ji, former vice president of the Investment Banking Headquarters of Tianhe Securities, and Zhao Hui, former co-general manager of the Bond Market Department of UBS Securities joined, it was seen as an important move by Zhongde to strengthen its capabilities in both stock and bond areas; however, as of now, among the cumulative 20 sponsor representatives of Zhongde Securities, there are only five true foreigners such as Wan Ming and Luo Min, and a staggering 75% of the members are from the original investment banking team of Shanxi Securities. A series of factors accumulated, and finally, Shanxi Securities decided to "seize power." There are also reports that unlike Wang's foreign background, his successor will be dispatched by the Chinese shareholder. Jiang Peixing, who once served as the Deputy Executive President of CCBI (Holdings) Limited, has received strong support from Shanxi Securities. After several rumors of resignation, the Chief Executive Officer of Zhongde Securities, Wang Zhonghe, seems to be approaching the moment of truly leaving. As soon as Wang Zhonghe confirmed his impending departure, it would inevitably become the latest sacrifice in the power struggle of joint venture securities firms. Just one month later, rumors of departure surfaced again; this time, the rumors were more detailed. Why did Fei Xiang leave decisively after just half a year? This returns to the beginning, when Shanxi Securities quietly initiated the recruitment for the CEO of Zhongde in March this year. Although there were some twists and turns along the way, they eventually found a satisfactory candidate. Since its establishment, rumors of conflicts between Shanxi Securities and Deutsche Bank have never ceased; and after the Spring Festival this year, the long-accumulated contradictions finally erupted. Is the arrival of a new CEO enough to resolve the inherent conflicts between Chinese and foreign shareholders? On March 31, the reporter sought confirmation from Wang Zhonghe himself regarding the aforementioned rumors. "I haven't heard anything at all," Wang said at the time, even joking with the reporter, "You can tell them not to come, I'm still in this position." Unlike Wang, the next CEO will be dispatched by the Chinese shareholder. Jiang Peixing, who previously served as the Deputy Executive President of CCBI (Holdings) Co., Ltd., has received strong support from Shanxi Securities. After experiencing several rumors of resignation, the Chief Executive Officer of Zhongde Securities, Wang Zhonghe, seems to be approaching the time of truly leaving. Once Wang Zhonghe confirms his departure, it will undoubtedly become the latest sacrifice in the power struggle of joint venture securities firms. In the core business of the bank department of Zhongde Securities, a power shift has already taken place; insiders confirmed to reporters that the head of the investment banking department, Fei Xiang, has resigned. Facing customer pressure, Shanxi Securities had no choice but to compromise. On March 30, Wang Zhonghe met with several major customers and promised to set aside the aforementioned grievances, confirming his continued tenure. Rumors about Wang Zhonghe's resignation have circulated in public opinion circles. Now, the widely accepted version is that after his contract with Zhongde Securities expires, Wang may choose not to renew it. Just as before, in the newly transformed investment banking department of the original Shanxi Securities investment banking team, Fei Xiang's status in the industry is also considered senior. He joined Merrill Lynch in 2000 and was responsible for the overseas listings, mergers and acquisitions, and bond issuance projects of well-known enterprises such as China Telecom, CNOOC, Air China, and China Mobile. Even in October 2010, Wang Zhonghe praised Fei Xiang in a media interview as a "rare expert who truly understands both East and West in investment." Due to the low underwriting fee rates and high cost expenditures, Zhongde Securities' profitability has been significantly weakened. Shanxi Securities' 2010 annual report shows that despite accumulating 320 million yuan in investment banking revenue last year, related operating expenses also rose sharply to 270 million yuan, resulting in an operating profit margin of only 14.3%, ranking last among 15 listed securities companies. Website www.0356t.com Can help others www.0356t.com Assist the growth of invested enterprises www.0356t.com Our fund's temperament is just like this www.0356t.com