(CBN Global) April 5 -- China Universal Asset Management Co. has said Mr. Chen Canhui, deputy GM and COO, resigned on March 30 in another sign that China's public fund sector is finding it hard to retain talent. His departure is a significant loss to China Universal and will affect the firm's online financial services segment.
Since he joined the Shanghai-based firm in July 2008, Mr. Chen founded, led and single-handedly developed its Internet banking business to the extent that it became the industry benchmark.
Under Mr. Chen's leadership, China Universal launched the country's first money market fund in 2009 called 'Xianjinbao.' This cash fund manages hundreds of billions of Chinese yuan deposits and has more than 10 million customer accounts. It ranks second only to Yu'ebao, a fund offered by China's largest payment service provider Alipay.com Co., an affiliate of e-commerce giant Alibaba Group Holding Ltd.
The public fund industry is facing difficulties in retaining talents who can promote the business, and vitalize its structure and returns. For the past two years, key management personnel such as Ms. Xiao Wen, the person-in-charge at GF Fund Management Co., Mr. Zheng Weibo, the person-in-charge at China Southern Asset Management Co. and Mr. Lu Xiaoye, CIO of ChinaAMC have left their companies.
As public fund companies are mostly state-owned entities, it is challenging to develop the business as there are too many obstacles and difficulties, "Huge transformation requires courage, requires a lot of manpower and financial resources, but it also needs a professional team," an executive from a large fund company said. "At the moment, large fund companies offer preferential employment but the higher management lacks the momentum to change, while smaller fund companies are struggling to survive, and lack the ability and resources for any transition."
Mr. Chen will join CEFC Shanghai Securities Ltd. as its CEO to coordinate the company's Internet financial businesses. CEFC Shanghai Securities is wholly owned by CEFC China, a multi-licensed comprehensive securities company, headquartered in Shanghai.