(Yicai Global) April 19 -- Shares in China Merchants Bank tumbled both on the mainland and in Hong Kong today and yesterday after the Chinese retail lending giant said it is removing its highest-ranking executive before the end of his tenure in June, stunning market observers.

China Merchants Bank’s Hong Kong-traded stock [HKG:3968] plummeted 11.46 percent to close at HKD52.90 (USD6) today. The bourse was closed for a public holiday yesterday. Its mainland shares [SHA:600036] closed down 2.97 percent at CNY42.10 (USD6.60) today after plunging 7.4 percent yesterday.

Tian Huiyu, who has been at the helm for the past nine years, will be relieved of his posts of president and director with immediate effect, the Shenzhen-based bank said yesterday, citing the board's decision. No reasons were given for the swift departure. Executive vice president Wang Liang will take charge in the interim.

During Tian’s nine-year tenure, the bank’s profit has more than doubled to CNY120.8 billion (USD18.9 billion), revenue has shot up two-and-a-half times to CNY331.2 billion (USD52 billion), and the value of its assets has more than doubled to CNY9.3 trillion (USD1.46 trillion).

56-year-old Tian, who worked for China Cinda Asset Management, Bank of Shanghai and China Construction Bank before joining China Merchants Bank, will be assigned to another position in the organization, China Merchants Bank said, without giving more details. Unconfirmed media reports say that he will be made vice chairman of a financial group under parent firm China Merchants Group.

Wang, who is the same age as Tian, was promoted to executive VP in August last year. He is also board secretary and the executive in charge of the bank’s financial affairs. Since joining China Merchants Bank in 1995 he has served as the president of its Beijing branch as well as associate president and vice president of the bank’s head office.

Editor: Kim Taylor