Head of Hong Kong-based brokerage Guotai Junan worldwide ‘missing’ in case

Based in Hong Kong, Yim is a high-profile figure in the local securities industry, including through his comments to the media and roles with the Chinese Securities Association of Hong Kong. They closed down 12.3pc at HK$2.85 (24p).

Cheung said he last spoke to Yim on the phone after a November 4 financial forum hosted by China Central Television in Hong Kong. Ronald Wan, at Partners Capital global in Hong Kong, warned: “Investors will be concerned …”

Guotai Junan Securities confirmed it had not been able to contact Yim Fung since 18 November, saying he was now “unable to discharge his duties”, according to the Telegraph.

Guotai Junan International’s use of language strikes a familiar tone in previous episodes of initially unexplained disappearance of senior executives of Chinese companies who were later found to be targets of official probes into corruption or financial fraud. “It will also affect sentiment over the brokerage industry as a whole”.

Mr Yim has been a member of the Inner Mongolia arm of the Chinese People’s Political Consultative Conference, a state advisory body.

Beijing last week said it was investigating Yao Gang, a former vice-chairman of China Securities Regulatory Commission, who was suspected of serious violations of discipline.

The crackdown in the mainland’s financial sector is intensifying, with Guotai Junan Securities reporting the head of its overseas subsidiary has gone missing.

At least 16 people had been arrested or were under investigation as part of the regime’s crackdown, according to research reported by Bloomberg. Well-known fund manager Xu Xiang was also recently arrested and is being investigated for alleged insider trading. The company, part of the mainland’s third-largest securities brokerage by total assets, said it had appointed deputy chief executive Qi Haiying as chairman, and Wong Tung Ching, another deputy chief executive, as chief executive. No comment has been available from Cheng or others who have been named by state media or their companies as under investigation or assisting with investigations.

Guotai Junan has charged deputy chief exec, Wong Tung Ching, with leading the company in Fung’s absence.

“It’s an open secret that he was one of the few trusted aides of Yao during Yao’s tenure at Guotai Junan”, the source said. ICAC said it wouldn’t comment on individual cases.