09.26.2001
CDIB loses top former boss

• Development: The former president of China Development & Industrial Bank, Benny Hu, has decided to leave the bank and start a venture business focusing on greater China. Hu has helped the bank build successful VCs in the past. Reports suggest two large financial groups, Fubon and Lin Yuan, have shown an interest in Hu due to his experience in the sector.

• Analysis: As the market had known of the possible move for some time, we do not expect Huˇ¦s departure to have any material impact on the bankˇ¦s stock price. For the bank itself, we believe a poor global investment environment will continue to affect results.

• Primasia View: We recommend investors to avoid CDIB at the moment.