According to a report issued by JPMorgan Chase, China Merchants Bank dismissed Tian Huiyu as president, believing that the sudden change in management would not have any impact on the financial position of China Merchants Bank, but expected that the share price would come under downward pressure in the short term, with a target price of HK $85 and a rating increase.

Morgan Tong explained that sudden changes in senior management are not common for China Merchants Bank, and the lack of disclosure of the reasons for resignation and future work may arouse market concerns. that is, his resignation may be related to an earlier media report that a senior management of China Merchants Bank is assisting in a legal investigation. It is unclear whether Wang Liang will take over Tian Huiyu's duties permanently or only temporarily, leaving uncertainty as to whether there will be further senior management changes. In addition, China Merchants Bank's current H-share price is equal to 1.47 times this year's forecast price-to-book ratio, which is a substantial premium to its peers.

According to Moto, Tian Huiyu led the second strategic transformation and digital promotion of China Merchants Bank, and the return on net assets and valuation multiple of China Merchants Bank increased significantly during its term of office since 2013. China Merchants Bank did not disclose the reasons for his departure, but said the operation would not be affected. In the medium term, share price performance will depend on a number of factors, including whether China Merchants Bank can continue to provide better financial results than its peers and regain investor confidence, and whether Tian Huiyu's successor will introduce strategic changes. as well as the reasons for Tian Huiyu's departure and the potential consequences.

Focus of CBBC