The Shanghai sell-side landscape "undergoes a huge change": the three giants each occupy the "golden chair"

Suddenly, the three most well-known securities company research institutes in Shanghai have all changed their leaders. At a time when the international environment and the securities market are most volatile, a personnel change that may alter the "sell-side research market" landscape in Shanghai and even across the country has begun.

According to media reports, on the afternoon of April 29, Dongfang Securities Research Institute held a staff meeting, where company leaders officially announced that Huang Yanming had joined Dongfang Securities and would serve as the head of the research institute. Previously, Huang Yanming had just left Guotai Junan Securities after more than ten years of service.

Just five days earlier, on April 24, Haitong Asset Management announced that Lu Ying had resigned from the position of chairman on April 22 due to work arrangements. Earlier, Haifutong Fund also announced Lu Ying's resignation as chairman. Media reports indicate that after leaving the two asset management institutions, Lu Ying will "return" to Guotai Junan Securities to serve as the first head of the merged Guotai Junan Securities Research Institute.

Another established sell-side institution in Shanghai, Shenwan Hongyuan Research Institute, recently announced that Wang Sheng would take over as the head of the institute, succeeding Zhou Haichen. Both Wang Sheng and Zhou Haichen are top analysts long cultivated by Shenwan Research Institute, with Zhou Haichen also serving as an executive (senior management) of Shenwan Hongyuan Company starting in 2024. Wang Sheng's appointment is considered "the will of the people."

Just before the May Day holiday, the three star analysts turned research institute heads each took office, embarking on a new and perhaps exciting business journey.

Huang Yanming's "Strive for Success"

In fact, more than a year ago, the "destinations" of these three research giants had already attracted much attention and speculation.

First and foremost is Huang Yanming, one of the most senior research institute heads in the industry. At just over fifty years of age, he unexpectedly stepped down as the head of the Guojun Research Institute (the predecessor of Guotai Junan Securities Research Institute) in March 2024, leading to various invitations from different parties.

Many external opinions believe that with Huang Yanming's qualifications, abilities, and influence, his fit for a relatively second-tier brokerage's "training" department head position is not high, and he may not be able to settle down there for the long term.

Indeed, Huang Yanming's qualifications are quite outstanding.

He is known in the industry as the "General Instructor of A-share Research," having entered Shenwan Research Institute as a securities analyst in 1996, becoming one of the first generation of industry analysts.

After that, Huang Yanming served as the deputy head of Shenwan Research Institute, deputy general manager of Shenyin Wanguo Securities Research Company, and long managed the research business of Shenwan Research Institute, nurturing countless analysts under his leadership. Many now-famous star analysts and fund managers have attended Huang Yanming's classes.

In the second half of 2010, after failing to "move forward" (become the head of the research institute), Huang Yanming switched to UBS Securities, where he served as the head of research (equivalent to the head of the research institute) and was fully responsible for the company's securities research work But the "honeymoon period" quickly passed. In April 2012, the news of Huang Yanming stepping down as the head of UBS Securities Research Department was confirmed.

After leaving UBS Securities, Huang Yanming's next stop was at Guotai Junan Research Institute. In August 2012, Huang Yanming took over as the fourth director of Guotai Junan Research Institute. After that, the Guotai Junan Research Institute entered over 10 years of the "Huang Yanming era."

When Huang Yanming joined, it coincided with a "low point" for Guotai Junan Research Institute. After the departure of the previous star director, that year's Guotai Junan Research Institute experienced a large-scale personnel change and restructuring. This "low point" lasted until Huang Yanming arrived, after which Guotai Junan began to rise again and re-entered the forefront of the industry.

In the nearly 12 years that followed, Huang Yanming served as the director of Guotai Junan Research Institute. He did not, like younger colleagues Liu Yuanrui, Zhou Haichen, and Chen Gang, get promoted to the executive team of the parent company, but he also did not leave, remaining in the director position.

Under his leadership, Guotai Junan Research Institute gradually gained a more "stable" atmosphere, ranking sixth in the industry (commission income) in 2022, sixth again in 2023, and after his departure in 2024, the commission ranking dropped one place to seventh in the industry.

Huang Yanming finally set his sights on a new direction. According to industry sources, at the invitation of relevant leaders from Dongfang Securities, Huang Yanming will serve as the director of Dongfang Securities Research Institute, taking charge of the future of this industry powerhouse.

Statistics from WIND show that Dongfang Securities ranked tenth in sell-side commissions in 2023 and fifteenth in 2024.

Such rankings should provide room for someone of Huang Yanming's stature, and considering his past experience and age, the position of director at Dongfang Securities Research Institute may be his "final battle" in his career.

Lu Ying's "Turning Point"

Almost simultaneously with Huang Yanming's departure from Guotai Junan Research Institute, Lu Ying, the former head of Haitong Securities Research Institute, also became another focus of external attention.

At that time, rumors of a merger between Haitong and Guotai Junan were already circulating in the market. As the first platinum analyst of Haitong Securities Research Institute and a long-term leader, Lu Ying stepped down from the position of head of Haitong Securities Research Institute at this critical moment, with the company's chief strategy analyst Xun Yugen taking over, making the personnel arrangement very eye-catching.

Later, although Lu Ying took over as the deputy director of Haitong Securities Wealth Management Committee, chairman of Haitong Asset Management, and chairman of Hai Futong Fund (respectively succeeding Pei Changjiang and Yang Cangbing), which temporarily quelled external speculation, the merger of Guotai Junan and Haitong Securities became a reality, and the two companies Lu Ying chaired faced integration challenges post-merger. This again sparked external interest in Lu Ying's future direction.

Lu Ying is a typical case of "research excellence leading to management." She has been with Haitong Securities since July 2000, serving as a senior analyst, chief analyst, head of the industry department, assistant director, deputy director, and director of the research institute The first 23 years of her career were spent at one institution - Haitong Securities Research Institute.

Employees with "Haitong genes" and rich research achievements are naturally the "favorites" of leaders from various institutions.

As the longest-serving director of Haitong Securities Research Institute, Lu Ying has led the institute for over a decade. Steady, low-key, methodical, and reassuring.

Starting in December 2023, Lu Ying's career trajectory suddenly changed dramatically. She bid farewell to the research line and took on the role of deputy director of the Wealth Management Committee. In January 2024, she successively became the chairman of Shanghai Haitong Securities Asset Management Co., Ltd. and the chairman of Haifutong Fund.

Especially on the night of September 5, 2024, just before Guotai Junan and Haitong Securities both announced the "suspension notice for planning major asset restructuring," Haifutong Fund announced that Lu Ying would take over as chairman.

Such a key personnel arrangement at this critical moment immediately drew more attention to Lu Ying.

However, an unexpected yet reasonable personnel arrangement occurred, and ultimately Lu Ying stepped down from her roles as chairman of the two asset management institutions she had taken over at a critical time, and instead became the director of the newly merged Guotai Haitong Securities Research Institute.

Lu Ying's appointment provided the Guotai Haitong Securities Research Institute with a first director whose qualifications and prestige met expectations from all parties. However, it also indicated that she would not play a role in the future Guotai Haitong asset management line.

In the broader positioning and integration involving the original Haitong Asset Management, Guotai Junan Asset Management, Haifutong Fund, and Huashan Fund, other key figures will emerge to lead the business integration of these institutions.

Wang Sheng's "Public Expectation"

In contrast, it was relatively in line with external expectations that Wang Sheng took over as the director of Shenwan Hongyuan Research Institute.

As a veteran, business star, and former deputy director of Shenwan Hongyuan Securities Research Institute, Wang Sheng's research influence is quite prominent in the industry. He has also been on the "candidate list" for the director position.

Especially as the former director Zhou Haichen was promoted to the company's executive committee and also served as the chairman of the research institute, promoting a new director became an urgent personnel need.

The recent personnel adjustment at Shenwan Research Institute began six months ago. In September last year, Shenwan Hongyuan Securities held a cadre appointment announcement meeting, where the former director Zheng Zhiguo, who had worked at Shenwan Hongyuan Research Institute for 23 years, no longer served as the party secretary and chairman of the institute, but instead took on the role of party secretary and chairman of Shenwan Hongyuan Underwriting and Sponsorship Company. Zhou Haichen, a member of the Shenwan Hongyuan Securities Executive Committee, concurrently served as the party secretary and chairman of Shenwan Hongyuan Research Institute.

Subsequently, it was reported that the senior management of Shenwan Hongyuan emphasized further leveraging the "linkage between research, investment, and investment banking business" in their strategic layout, and the Shenwan Hongyuan annual report also mentioned, "Leveraging the advantages of the research institute, enhancing the synergy of political research, industrial research, and investment research, improving core capabilities in investment banking sponsorship, pricing, etc., and increasing the allocation of investment business to high-quality assets."

This could represent a new opportunity and challenge for the Shenwan Hongyuan Research Institute, which has been established for 33 years. The predecessor of Shenwan Hongyuan Research Institute was the Shanghai Shenyin Wanguo Securities Research Co., Ltd., founded in 1992, and it is one of the few research institutes in the industry with independent legal status Shenwan Research Institute was once the long-standing industry leader, but in recent years, its ranking has declined due to repositioning and intense industry competition, although it remains among the top research groups. In the 2024 sell-side commission ranking, Shenwan Hongyuan Research Institute ranked 14th in the industry with a commission of 294 million yuan, a year-on-year decrease.

In 2024, Shenwan Hongyuan Research Institute actively "recruited talent," with former Chief Economist of Guojin Securities Zhao Wei joining as Chief Economist; in December, "post-85" light industry and paper chief Tu Yiting was promoted to assistant general manager.

With the strategy expert Wang Sheng "taking office" as the head of the research institute, a new look for this institute is about to be presented.

The Sell-Side World is a World of People

Generally speaking, the position of head of a securities company's research institute is considered a middle management role among various brokerages, on par with the general manager of the brokerage business department, the general manager of the margin financing department, the head of asset management, and the general manager of the office.

However, in the securities industry, the head of a well-known research institute has far greater influence than other middle management in companies, and their recognition may even surpass that of the top leader of the parent company. Therefore, the selection and adjustment of candidates for this position attract top attention in the industry.

The main reasons behind this are threefold:

1. The research team is the most closely related to the influence and brand association of each securities company. The head of the research institute is usually not only a management position but also a business leader, often serving as a spokesperson for strategy and even a chief economist. Every word and action can influence the market, making the selection of relevant candidates extremely challenging.

2. Well-known analysts within the research team are often the highest-paid and have the most stringent recruitment requirements among all brokerages (especially those ranked in the top twenty in the industry). As the head of the research team, the personal qualifications, management responsibilities, and work intensity of the research institute head are exceptionally heavy.

3. Influential sell-side institutions need to serve clients across the market and generate commissions. The amount of these commissions directly determines the research institute's ranking and overall influence in the industry. Therefore, the responsibilities of the research institute head are highly market-oriented, professional, and systematic. "A thousand troops are easy to find, but a general is hard to recruit" is the reality.

Thus, when top-tier brokerage research institute positions are "waiting for candidates," it often triggers strong external attention.

However, in recent years, the positions of heads of various brokerage research institutes have frequently "changed." In this round of adjustment, the role of research institute head has indeed become increasingly challenging.

Observing recent personnel changes, in January of this year, former Deputy Head of Tianfeng Securities Research Institute and Chief Fixed Income Analyst Sun Binbin joined Caitong Securities as the head of the research institute; in the same month, Sun Yuanfeng, head of Huajin Securities Research Institute, is set to become the head of Pacific Securities Research Institute. Earlier, Hu Youwen, head of Minsheng Securities Research Institute, confirmed his role as head of the merged Guolian Minsheng Research Institute.

The personnel dynamics in sell-side research continue to flow beneath the surface.

Risk Warning and Disclaimer

The market has risks, and investment requires caution. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investing based on this is at one's own risk