(Bloomberg) -- Value Partners Group Ltd. founder Cheah Cheng Hye plans to give up his co-chairman role as Chinese brokerage GF Securities Co. reshuffles the senior ranks at the Hong Kong asset manager after becoming the biggest shareholder a year ago.
Cheah, who will remain on the board, has notified select board members and senior management at the Hong Kong-based asset manager of his decision, a person familiar with the matter said. Cheah co-founded the boutique fund manager in 1993 and it now has offices across China as well as in Kuala Lumpur, Singapore and London with $5.4 billion of assets under management.
The Chinese brokerage last month appointed its own executive directors in a board revamp, replacing Louis So as co-chairman with Lin Xianghong. So, who retains his role as co-chief investment officer with Cheah, now plans to leave after more than a decade at the firm, the person said, asking not to be identified because decisions haven’t been finalized. The moves are planned for January next year, the person said.
A Value Partners representative said the roles of Cheah and So remained unchanged, while declining to comment further. Cheah and So didn’t respond to requests seeking comment.
GF bought a 20.2% stake from the founders last year as part of the mainland brokerage’s push overseas. Last month’s announcement also included the board resignation of Norman Ho, who will focus on his role as senior investment director, and the appointment of Li Qian as a director from the Guangzhou-based firm.
Chinese brokerages, including Citic Securities Co. and Haitong Securities Co., have been tightening control over their Hong Kong operations as they aim to expand beyond their domestic market and mitigate risks. The increased scrutiny has introduced hurdles to decision-making, while pay disparities between staff in Hong Kong and China have caused friction and prompted departures.
Value Partners reported operating profit of HK$600,000 ($77,000) in the first six months of the year, after a loss in the year-earlier period. Its assets under management dropped 3% to $5.4 billion.
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