In the past week, several law-enforcement cases rocked the financial market. Lei Bo, chairman of Sinolink Securities Co. (SHA 600109) was under investigation for "personal reasons," according to a statement issued by the company. Lei's close connections with Wang Yi, former vice chairman of China's securities regulator who was arrested last autumn, and Wei Dong, an influential financier who committed suicide a year ago, suggest that his investigation may be another chapter of the massive, ongoing probe of China's securities market.
On May 12, China's securities regulator announced four violations made by an executive of a securities firm, public company officials and bank officials handling merger deals. CSRC did not specify the penalty or give the securities company's name. Caijing uncovered that the securities firm executive is the board secretary of Tianjin-based Bohai Securities Co.
Some personnel changes have stirred the market as well. JP Morgan China president Li Xiaojia is on the short list for chief executive of Hong Kong Exchanges and Clearing Ltd (HKEx), a senior Hong Kong finance industry official told Caijing. And the world's longest serving central banker, Joseph Yam, is expected to become an adviser to the People's Bank of China when he retires from his post at the Hong Kong Monetary Authority. Joseph Yam has been the chief executive of Hong Kong's currency board since 1993.
Bank of America sold 13.5 billion H shares of China Construction Bank for US$ 7.3 billion to an investment group led by Hopu Investment Management. Buyers include Hopu, China Life Insurance, Temasek and Bank of China International. Several significant sales of China Construction Bank's shares occurred on May 13, executed by UBS, but the seller remains unknown.
In London, officials attending the second economic dialogue between China and the UK said that China will allow qualified foreign companies to float shares and issue depository receipts on Chinese stock exchanges. Fortescue Metals Group Ltd., an Australian miner, expressed interest but said it has no immediate plans to list on the Shanghai bourse.
