Wang Yong, Everbright Securities Co. Ltd.'s chief risk officer, tendered his resignation, Caixin reported Aug. 1, citing multiple unnamed sources.
Wang's resignation comes amid the fallout from an investment by the brokerage's Everbright Capital Corp. unit into the now-bankrupt British media company MP & Silva Holding SA. In 2016, Everbright Capital joined other investors in buying a 65% stake in MP & Silva for 5.2 billion Chinese yuan. In October, MP & Silva was declared bankrupt. While Everbright Capital only took a minority stake with a 60 million yuan investment, it had to allocate over 1.5 billion yuan in provisions for liabilities and impairment losses for 2018.
Everbright Capital is facing a lawsuit from China Merchants Bank Co. Ltd. over the deal. The bank is seeking 3.5 billion yuan in compensation from the defendant after it injected 3.2 billion yuan in an investment vehicle that Everbright Capital set up for the deal.
As of Aug. 1, US$1 was equivalent to 6.90 Chinese yuan.