On May 28, the board of directors of China Merchants Bank Co., Ltd. held a meeting and passed four director nomination proposals. These included the nomination of two non-executive directors, one independent director, and the nomination of Wang Xiaoqing, the bank's president, as an executive director.
Among the two non-executive director candidates, the nomination of Huo Da has drawn attention. This is not only because Huo Da, who recently resigned as chairman of China Merchants Securities, has just taken over the position of Party Committee Secretary of China Merchants Group Financial Holdings from Wang Xiaoqing, but also because he received a "regulatory warning letter" during his tenure at the helm of China Merchants Securities.
Information shows that Huo Da was born in May 1968. He served as chairman of China Merchants Securities from May 2017 until his resignation in May 2026, leading the securities firm for nine years.
Before joining China Merchants Securities, Huo Da worked within the China Securities Regulatory Commission (CSRC) system for 20 years. His previous roles include serving as a division chief at the CSRC, assistant to the director of the CSRC Shenzhen Bureau, deputy inspector, deputy director, and director of the CSRC's Market Supervision Department, director of the CSRC's Corporate Bond Supervision Department, director of the CSRC's Research Center, president of the Beijing Securities and Futures Research Institute, president of the China Securities Finance Research Institute, a part-time member of the 17th Issuance Examination Committee of the CSRC, and chairman and chief information officer of China Merchants Securities.
On May 8, 2026, China Merchants Securities announced that Huo Da had applied to resign from all his positions at the company, including chairman and executive director, due to work changes. Following his resignation, he no longer serves as the company's legal representative.
The previous day, the Party Committee of China Merchants Group had decided: Huo Da was appointed as a member and secretary of the Party Committee of China Merchants Group Financial Holdings Co., Ltd., and it was recommended that he be appointed as general manager of the company, with his rank clarified as group director level. Wang Xiaoqing, the former general manager of China Merchants Group Financial Holdings, was transferred to serve as Party Committee Secretary and President of China Merchants Bank Co., Ltd.
It is noted that although Huo Da worked in the CSRC system for 20 years, he still received a "regulatory warning letter" during his tenure as chairman of China Merchants Securities.
On February 9, 2024, the Shenzhen Securities Regulatory Bureau issued the "Decision of the Shenzhen Securities Regulatory Bureau on Taking Regulatory Measures of Issuing a Warning Letter to Huo Da." The document pointed out that several employees of China Merchants Securities had engaged in illegal and违规 activities, including long-term stock trading using others' securities accounts, privately accepting client entrustment for stock trading, and entrusting others to trade stocks. These issues reflected inadequate compliance and internal control management at China Merchants Securities. As the then chairman of China Merchants Securities, Huo Da bore management responsibility for the aforementioned problems.
Leaving China Merchants Securities with a "regulatory warning letter" on his record inevitably leaves a mark on this veteran's career.
The market is focused on whether it is compliant for China Merchants Bank's board to propose appointing Huo Da, who carries this regulatory warning, as a director.
According to the "Measures for the Administration of Qualifications of Directors (Council Members) and Senior Management Personnel of Banking Financial Institutions," the basic conditions for a bank director should include "good conduct and reputation," and they should "have a good record in finance, economics, or other related professions."
The document also explicitly stipulates that "having direct or leadership responsibility for illegal or违规 business activities or major losses of a previously employed institution, where the circumstances are serious" constitutes not having a "good record in finance, economics, or other related professions."
Does Huo Da, having received a regulatory warning letter from the supervisory authority, still possess a good reputation? Does this constitute "serious circumstances" in the determination of responsibility for违规 acts?
In its announcement, China Merchants Bank directly stated that since the warning letter is a regulatory measure taken by the Shenzhen Securities Regulatory Bureau, it does not constitute an administrative penalty, market entry prohibition measure, or other circumstance deemed as making a person unsuitable to serve as a director of a listed company under the laws, regulations, rules, or regulatory provisions of mainland China. Therefore, it does not affect his qualification to serve as a director of a listed company. Hence, the warning letter does not affect Huo Da's qualification and suitability to serve as a non-executive director of the company.
However, this is merely the unilateral statement of China Merchants Bank.
Whether Huo Da can assume the position of director at China Merchants Bank still requires review and approval by the shareholders' meeting and must obtain the qualification approval from the National Financial Regulatory Administration.
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