CITIC Securities, one of China’s largest brokerages, has elected as its new chairman a senior executive of its ultimate parent CITIC Group, the firm said yesterday.

    The move comes after a number of high-level CITIC Securities employees came under investigation in a government crackdown on insider dealing, including Cheng Boming, the brokerage’s general manager and executive director since 2012, after last summer’s US$5 trillion stock rout.

    Zhang Youjun, 50, currently assistant to the general manager at CITIC Group, will replace current chairman of the brokerage Wang Dongming, the company said in a statement to the Shanghai Stock Exchange. Zhang and six other executives have been appointed directors of the new board for a three-year term, the brokerage said.

    CITIC Group nominated Zhang in November to stand for election as chairman to replace Wang, whose retirement was announced by CITIC Securities at the time.

    Zhang joined CITIC Securities in 1995, the year it was established, before stints at Changsheng Fund Management and China Securities. He moved to CITIC Group at the end of 2011.

    Wang has served as chairman since 2011, as well as holding senior positions at other CITIC-connected firms.

    After stocks plunged last year around mid-June, the government has taken an increasingly tough line on any trading behavior that it suspects of upping volatility, investigating journalists, social media users and regulators.

    Seven executives at CITIC Securities were put under investigation for alleged offences, including insider trading.

    (SD-Agencies)