The shifts in the economic environment have led to an increasing number of people in the workplace experiencing the feeling of "being at the mercy of circumstances" more directly and profoundly in reality.
In 2023, the wave of layoffs and salary cuts in global tech companies and major domestic internet firms became a hot topic in the domestic economic environment and the internet for the year. This round of layoffs and salary cuts even continued into the present of 2024:
Essentially, they are concentrated in industries and companies that can create a middle-class group and provide middle-class income levels:
Major internet companies;
The financial sector, such as securities firms and banks;
The entire real estate chain, including upstream, midstream, and downstream, developers, construction companies, design institutes, building material merchants, real estate marketing and intermediaries, and even migrant workers...
Unexpectedly, since the second half of 2024, a wave of executive changes has emerged among A-share listed companies.
The term "change" is used politely, but in reality, it is essentially resignations.
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Can the wind of employment difficulties also blow to these outstanding individuals, those with high positions and significant wealth accumulation, the true elite of society?
This trend may not be so simple, and among the most noteworthy developments is that since April 2024, the resignation of 12 bank presidents has occurred.According to media statistics, among the 27 rural commercial banks listed on the A-share market, more than 70% of these banks have experienced the departure of senior executives this year. The clustering of resignations is certainly not normal.
Layoffs and salary cuts can be easily explained, as they can be understood through the operation and logic of the economic and social system. However, the mass resignations of senior executives from listed companies and financial institutions at this stage are likely not that simple.
This article will delve into the detailed analysis of the wave of executive resignations that began in the second half of 2024, combining several current realities in China's economic environment. Starting from the perspective of respecting common sense and the laws of economics, it will deeply explore the causal logic and key essence behind this obvious trend. It will also conduct an in-depth, opinionated, and well-founded discussion and analysis of the possible future direction of this trend, as well as potential changes in the domestic economic environment.
1
Has there been a wave of executive resignations in domestic A-share companies and the financial circle since the second half of 2024?
Since the second half of the year, a wave of executive changes has emerged among A-share listed companies. Data from Tonghuashun iFind shows that as of September 19th, more than 1,600 A-share companies have disclosed information on executive departures or changes since July, involving more than 4,000 directors, supervisors, and senior executives. Looking at the industry distribution, there have been a significant number of executive changes in sectors such as pharmaceuticals, photovoltaics, electronics, and real estate.
By examining the resignation or change announcements of more than 1,600 companies, two trends can be observed:On the one hand, there has been a noticeable increase in the clustering of executive changes. For instance, Shenzhen Konka recently disclosed that the company's board of directors has recently received resignation reports from several executives, involving changes in positions such as the chairman of the board, president, chief financial officer, and secretary of the board of directors.
On the other hand, the number of executive changes in state-controlled listed companies has significantly increased compared to the same period last year, with "job transfers" becoming one of the main reasons for the increase in executive changes.
In this wave of changes, what is particularly noteworthy is that, according to incomplete statistics, since April of this year, a total of 12 bank presidents have resigned from state-owned large and medium-sized banks.
Bank presidents resigning is not necessarily a new phenomenon, but the "collective" resignation of so many presidents from state-owned banks in just five months always feels unusual.
It's not just state-owned large and medium-sized banks; according to the latest observations from Southern Metropolis · Bay Finance Society, among the 27 listed urban and rural commercial banks in the A-share market, more than 70% of the banks have experienced executive departures within the year.
At the same time, it's not just banks; other financial institutions, including securities firms, investment banks, and insurance departments, have also seen a significant number of executives resign. In fact, many have gone to "have tea" shortly after leaving their positions.
From an industry perspective, the wave of financial executive departures is by no means a "simple resignation" and is not just for the sake of changing jobs. Many of these departures are abnormal and without any signs.
The reality is that there is a basis for these events, but the underlying causes and some subtle yet critical changes behind them are more worthy of attention and concern.
The economic pulse and environmental trends are often this obvious.What lies behind the wave of high-level executive departures? The turnover and departures of executives in listed companies are relatively easy to explain. Many changes in company management are often due to declining company performance, significant risks, and other reasons. Consequently, changes in company executives may send negative signals to investors or trigger fluctuations in the company's stock price. For example, the day after Li Chuyuan, the chairman of Baiyunshan, resigned, the company's stock price fell by more than 3%. Subsequently, the company's director, Zhang Chunbo, resigned for personal reasons, causing Baiyunshan's stock price to fall continuously once again.
However, the departures of executives from financial institutions and state-owned enterprises may not be so simple.
A cluster of resignations is definitely not normal. The underlying reasons are also guessable.
Looking at these events in a series indicates that the anti-corruption efforts behind the scenes are intensifying.
As for corruption, there are too many tricks, methods, and ways to play.
You might not be able to finish writing it in a thick book.
There are too many pests in finance, and financial corruption is extremely harmful. Take IPOs as an example. The original role of the stock market is to allocate resources well, allowing truly excellent but cash-strapped companies to raise funds and allowing wealthy investors to share in the dividends of enterprise development, meeting each other's needs. However, under the penetration of various financial parasites, China's stock market has actually become a platform for selling companies, which has completely messed up China's entire financial system.
The anti-corruption efforts in finance in 2024, along with a series of corresponding real trends, indicate that the country has realized the harmfulness and started to pay attention.However, entrenched ailments have lingered for too long and cannot be eradicated all at once; it requires a process akin to scraping the bone to remove the poison. The only hope is that we do not give up halfway. Everything is difficult at the beginning, but once started, there is a glimmer of hope.
Trend Analysis: Considering the current domestic economic environment, what should we think about next?
Reaching the position of a bank president means being a prominent figure in the financial circle; it's not an exaggeration to call them the gods of wealth. These presidents either don't want to continue or take desperate measures, risking their careers and breaking the law, which inevitably leads to deep contemplation about the current state of the banking industry.
By examining the financial reports of the Bank of China, one can find subtle clues. In the first half of this year, the Bank of China's operating income, pre-provision net profit, and net profit attributable to the parent company all showed a decline, with year-on-year decreases of 0.7%, 2.7%, and 1.2%, respectively. The only figure that has increased in recent years is the non-performing loan ratio, which is historically very rare.
The main business of banks can be broadly divided into two parts: one is earning interest spreads through deposits and loans, and the other is earning middle income through services and products. Both of these areas are currently facing significant challenges.
According to data disclosed by financial regulatory authorities, following the first time that commercial banks' net interest margin fell below 1.7% at the end of the fourth quarter last year, it further decreased to 1.54% in the first quarter of this year. In other words, the profit margins of banks are continuously being compressed. Don't think that this data is insignificant, just a difference of a few decimal places—when multiplied by the trillions in total assets, the difference becomes substantial.
The narrowing interest margin is just the tip of the iceberg. Currently, banks are struggling to attract deposits and issue loans. Some account managers, in order to meet loan targets, even use their own money to purchase loans. What does this mean? It means finding a qualified customer to negotiate a loan, with the interest paid by the account manager. The money is loaned out and simply sits in the customer's account until it is returned to the bank unchanged at maturity. This approach can be described as a lose-lose situation: the bank's funds are not reaching enterprises that truly need loans, and the account managers lose the interest. But what other choice is there when loan targets are set?Lending and deposit businesses are no longer easy to manage, and many banks have set their sights on non-interest income, which is what we refer to as intermediary services. However, the reality is that intermediary services are equally challenging to handle.
According to the financial data of various banks in 2023, intermediary service revenues are generally under pressure. Specifically, due to the fluctuations in the distribution of wealth management, public funds, and other products, some banks have seen a significant year-on-year decline in their fees and commission income. For instance, the non-interest income of Industrial and Commercial Bank of China, China Construction Bank, and Industrial Bank has decreased by more than 15%, while that of Agricultural Bank of China has dropped by 8.8%, and Bank of Communications has seen a 9.3% decline.
In the past, banks could simply lie still and enjoy a feast every day, but now they are suddenly faced with a diet of clear water and cabbage, requiring hard work and mental effort. How can they bear this?
For those bank presidents who have already reaped huge benefits from illegal operations, they are well aware that once they are investigated, they will face not only the loss of their positions but also the possibility of imprisonment.
Therefore, they choose to resign and leave, trying to escape, but they cannot hide their inner fear and anxiety.
The corruption issue in the banking industry has a long history and has always been a key area in the national anti-corruption efforts. However, despite the continuous increase in anti-corruption efforts, the corruption issue still persists. The reasons behind this are inseparable from the unwritten rules within the banking system.
In the banking industry, power means the allocation of resources, and those who hold power can often decide the direction of funds. This power of resource allocation is often exploited by some people and becomes a tool for them to seek private benefits. Bank presidents use their positions to accumulate a large amount of wealth through illegal lending, accepting bribes, and other means. These unwritten rules have long become an open secret within the banking system.
What is more critical is that these corrupt behaviors are often hidden very deeply and are difficult to be detected by the outside world. The internal relationships within banks are intertwined, and the chains of interests are complex. Some executives cover up for each other and conceal the truth, making the corruption issue difficult to resolve effectively for a long time.
From financial empty turnover to collusion, the problems of domestic banks in China have always been secretive and extremely risky.
And judging from the current trend of bank presidents resigning, a round of rectification and dramatic changes in China's banking industry may be imminent.The corruption issue in China's banking industry has reached a point where it cannot be ignored and must be addressed.
The onslaught of an anti-corruption storm, while causing a significant shock to the banking system, also presents an opportunity to reshape the industry's order. For executives who are still acting under the influence of a fluke mentality, the real anxiety has only just begun.
Only by completely eradicating the internal corruption can the banking industry truly embrace its future.
This is a key game between national will and capital consciousness. Although the outcome is predetermined, it is clear that such a game is still underway.
In conclusion:
By sorting and analyzing the latest trends and developments, what conclusions and insights can be drawn?
Although the public reasons for the resignation of most bank presidents focus on personal considerations, these phenomena actually reflect the complex and changing challenges and deep-seated structural dilemmas faced by the banking industry at present.
Why is the bank the company with the highest market value in China's financial market?
In the face of economic downturn, no one can stand aside, why can banks still make money easily?
The signals released behind phenomena such as the collective resignation of bank presidents and the acceleration of arrests are complex and profound. They are both the inevitable result of the in-depth development of the anti-corruption struggle and an important manifestation of the deepening reform of finance.From the perspective of individuals and ordinary people, these series of movements can actually be seen as positive signals. Any reforms and cleanups involving interests and real money are beneficial to the economic environment and the market. However, before the cleanup is completed and the dust settles, there will inevitably be a difficult process of continuous cat-and-mouse games. For ordinary people, the best choice in the face of fights and games at the level of immortals is to hide well, ensure their own safety, and remain sensitive and attentive to the situation. Some things cannot be said too bluntly, can they?
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