SHANGHAI--Lei Jie, the chairman of Founder Securities Co., has
been out of contact since Jan. 19, the company said in a
statement.
The company said it has been unable to contact Mr. Lei, who
asked for a one-week sick leave through his relatives on Jan. 12,
according to a filing on the Shanghai Stock Exchange.
The company's internal operations and management was affected by
his absence to a certain degree, said the brokerage, adding that
the exact situation needs further verification by the company.
Mr. Lei is also the chairman of Credit Suisse Founder Securities
Limited, according to the company's website, a securities-company
joint venture with Credit Suisse.
Credit Suisse declined to comment on Mr. Lei.
Founder Securities president He Qicong has been fulfilling Mr.
Lei's senior executive responsibilities since Jan. 21 and as acting
chairman since Jan. 22.
Credit Suisse won approval in 2008 to set up the joint venture
securities firm with Founder Securities. The venture, which is
33.3% owned by Credit Suisse, allows the Swiss bank to sponsor and
underwrite the issuing of shares and bonds in the Chinese domestic
capital market.
Foreign investment banks require a Chinese partner to sponsor
and underwrite Class-A-shares, which are denominated in Yuan.
At the time of the deal's announcement in 2008, Mr. Lei was
appointed as chairman of the new firm.
Global securities firms sought to bulk up their Chinese
operations over the past decade as the country gradually loosens
restrictions around its financial markets.
But stiff competition from local brokerages has meant that China
is a tougher market for foreign banks than many anticipated and
regulators in China continue to keep a tight grip on ownership
structures.
--Enda Curran, Daniel Inman and Wynne Wang contributed to this
article.
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