China Construction Bank President Chang Zhenming is to move to lead financial conglomerate CITIC Group, the Hong Kong-listed bank announced on Sunday.

The bank's board has already accepted Chang's resignation and will announce his successor within the week, a bank spokesman said.

Chang will also give up his position as a vice-chairman and executive director of the board.

A Reuters report quoted unnamed bank sources as saying Bank of Communications president Zhang Jianguo, 52, will succeed Chang as China Construction Bank's vice-chairman and president.

The removal was not because of different opinions with the board members, but triggered by the country's financial reforms, the bank spokesman said.

In a circular issued on Sunday, the board of China Construction Bank praised Chang's work over the past two years, particularly in the bank's restructuring and listing, innovation and performance.

Insiders said Chang is to take up the position of CITIC Group's chairman, though the group's spokesman declined to comment yesterday.

CITIC Group is currently chaired by Wang Jun, who has been in the position for about a decade and is due to retire this year.

Before joining China Construction Bank two years ago, Chang Zhenming was a deputy general manager of CITIC Group.

He had also headed and even co-founded several securities, banking and trust subsidiaries for the group, including CITIC Securities, CITIC Trust and Investment and Hong Kong-based CITIC Ka Wah Bank.

But in July 2004 he was assigned president of China Construction Bank by the government, as the massive State-owned bank was then restructuring and heading towards an overseas public listing.

The bank was listed in Hong Kong last October.

Its performance has been satisfactory so far, analysts said.

Its operating income rose 12.9 per cent in 2005 to reach 218.7 billion yuan (US$27.3 billion), net profit was up 4 per cent at 47 billion yuan (US$5.9 billion).

Its earnings per share, at 0.24 yuan (3 US cents), have also climbed 26.7 per cent in the year. Return on average assets was 1.11 per cent and return on average equity was 21.59 per cent, the best of the "Big Four" State-owned banks.

Meanwhile, the bank's non-performing loan ratio was 3.84 per cent by the end of 2005, 0.08 of a percentage point lower than a year ago.

The bank paid Chang Zhenming 1.1 million yuan (US$137,500) in compensation in 2005, bank sources said.

Source: China Daily