(Yicai Global) Aug. 3 -- Mr. Yao Yudong, director of China's central bank's Research Institute of Finance, told Yicai that he will leave to become the chief economist at Dacheng Fund Management Co., a top 500 asset fund.
Mr. Yao Yudong, follows in the footsteps of Mr. Wu Ge, a division chief at the central bank's exchange rate policy unit, who also left his government job to be chief economist at Huarong Securities Co., Ltd, a top 50 Chinese brokerage.
Mr. Yao, who holds a doctoral degree in economics from the University of Cambridge and has worked as a researcher at the World Bank and the International Monetary Fund, is the latest high profile name of a growing list of public sector employees who are dropping their 'iron rice bowls' and running to the private sector for better financial packages. His new position will offer him a generous remuneration package of over CNY1 million.
Dacheng Fund was established in 1998, making it one of the first ten fund managers in the Chinese securities market. However, it suffered huge losses in 2011 due to bad investment decisions. Dacheng Fund had CNY84.11 billion (USD12.6 billion) of assets under management in the second quarter, ranking 25th in the industry and were ranked 363rd in the world, in 2011, according to risk management consultants Towers Watson.
After Mr. Yao's departure, Mr. Lu Lei, head of the Research Bureau of the People's Bank of China, will also serve as head of the Research Institute of Finance, someone close to the central bank told Yicai. Mr. Yao is now undergoing audit procedures for his departure, as it will take some time for him to leave officially.
The Research Institute of Finance of the People's Bank of China is directly affiliated with the central bank. It is mainly engaged in the research of monetary policy theories, financial and economic development strategies and financial science to provide theoretical bases and research materials for the central bank to formulate monetary policies.