Hu Guanjin: Galaxy Securities’ president resigned in flash

According to the report, Galaxy Securities’ president and Party chief Hu Guanjin applied for resignation in January 2010. It was only four months after he took his posts in Galaxy Securities in September 2009. Central Huijin Investment Ltd., which is the shareholding company of Galaxy Securities, has already approved his application.

Last May, the Galaxy Securities’ president Xiao Shiqing was sacked from his post and put under investigation. Hu Changsheng was appointed to be in charge of this company. However, four months later, Hu Changsheng was replaced by Hu Guanjin.

The frequent changes of leadership told the predicament inside Galaxy Securities. Galaxy Securities was founded by the combination of the security departments of five financial institutions in China. “The complicated situation led to the chaotic management. Hu Guanjin’s resign could somewhat reflect this point,” said an insider. The management defect influenced the performance of Galaxy Securities. In 2008, Galaxy Securities was ranked at No.4 in the assets among its Chinese peers; however, its net rate of earnings on capital was only ranked at No.27.

It was known that Hu Guanjin started the reform to Galaxy Securities’ existing system, including the salary system. Maybe this impacted someone’s interests and they set up hurdles in Hu’s work.

Some people said that Hu, who had been working in a small security company in Shaanxi, lacked the experience of managing the large state-owned security company.