(Yicai Global) Jan. 11 -- Everbright Securities has removed three senior executives from their posts due to significant losses and risks in their areas of responsibility, Yicai Global has learned from people with knowledge of the matter. It follows a major overhaul of the Chinese brokerage in April last year when top leadership was disciplined by the Communist Party.

Vice President Wang Zhong and business director Li Bingtao are no longer on Everbright Securities’ executive list but they are still at the Shanghai-based firm and auditing is underway, Yicai Global has learned. While business director Dong Jie recently resigned, according to a company statement on Dec. 28.

Wang Zhong, who served as vice president from March 2015, was in charge of alternative investments, proprietary trading of equity assets and fixed-income assets. The proprietary trading of equity assets division hemorrhaged CNY1 billion (USD147.6 million) in 2021, despite the Shanghai Composite Index gaining 4.8 percent that year. And all the other businesses under his leadership, with the exception of fixed income assets, lost money.

Dong, who was in charge of the investment bank business, was regarded as not qualified in internal evaluation as the division had a severe lack of reserve projects, Yicai Global learned. President Liu Qiuming has now taken over her areas of responsibility.

46-year-old Wang Pei, who holds a Masters’ degree in economics from the People’s Bank of China’s School of Finance at Tsinghua University, will take over part of Wang Zhong’s duties, including equity investment trading and fixed-income, foreign exchange and commodities, according to an announcement by Everbright Securities on January 6. Wang Pei’s new title is just that of director, one level below Wang Zhong’s previous position.

The recent rejig follows a massive reshuffle in April last year when the chairman, chief supervisor and four other top execs at Everbright Securities were disciplined by the Communist Party Committee of its parent firm China Evergrande Group.

At the time, Wang Zhong escaped with a relatively mild punishment called ‘to accept criticism and re-education.’

Everbright Securities’  two past chairmen have been dismissed and put under investigation due to huge losses caused by corruption and messy administration, and a number of execs are also involved. Zhao Ling, who was vice president at sister company Everbright Bank, took over as chair in June last year.

Editors: Tang Shihua, Kim Taylor