(Yicai Global) Aug. 5 -- Bank of Jinzhou has appointed a senior executive from Industrial and Commercial Bank of China, which became the troubled lender's biggest shareholder earlier this month, and aims to issue new shares in the mainland or Hong Kong to support business development.

The board approved Guo Wenfeng, former vice president of ICBC's Liaoning branch, as the bank's new president, the lender said in a statement, adding that the board has also green lighted a study on how to issue shares to qualified investors.

Liaoning-based Bank of Jinzhou further plans to replace five other executives in the near future, including its party chief, deputy party chief, chairman, two vice presidents, and chief financial officer, the Securities Times reported. 

On July 28, ICBC, the world's largest bank, said it had joined with two Chinese state-owned asset managers to take a stake in Bank of Jinzhou of at least 17.3 percent, signaling progress in restructuring the crisis-struck lender. Through a subsidiary, ICBC said it intended to buy almost 11 percent of the city commercial bank for as much as CNY3 billion (USD426 million). China Great Wall Asset Management and China Cinda Asset Management also acquired stakes.

Bank of Jinzhou delayed the release of its 2018 earnings report after losing its auditor Ernst & Young which said it discovered the use of loans inconsistent with that described in credit documents.

Trading in the bank's shares [HKG:0416] has been suspended since the start of April. They last changed hands for HKG7 (89 US cents) each on March 29.

Editor: Emmi Laine