Ding Xuedong named as chairman of CICC

Ding Xuedong, chairman of the mainland's US$575 billion sovereign wealth fund China Investment Corp, will take over as chairman of mainland investment bank China International Capital Corp (CICC) after the resignation of Jin Liqun.

Jin, 65, had been head of the mainland's first investment bank for about a year. He is expected to be named president of the new US$50 billion Asian Infrastructure Investment Bank (AIIB), to be launched in Beijing today.

CICC said yesterday Jin would no longer serve as chairman and Ding (pictured) would take over. Last week CICC lost its long-time chief executive, Levin Zhu Yunlai, the son of former premier Zhu Rongji, in a move that raised doubts about its plans for an initial public offering in Hong Kong.

"The reshuffle itself wouldn't have a big impact on CICC since neither Jin or Ding is able to create a new growth engine for the company," said Howhow Zhang, the research head of Shanghai-based fund consultancy Z-Ben Advisors. "But it helps CICC to fast-track its preparations for the planned Hong Kong listing, which could eventually boost the investment bank's capital base."

Market watchers had said the departures of Levin Zhu and Jin would likely deter CICC from preparing for a US$500 million IPO in Hong Kong.

In addition to the departures of the two top managers, CICC has been losing market share to domestic rivals such as Citic Securities in underwriting mainland firms' overseas fundraising.