Firecracker
03-08-2008, 01:41 PM
Merrill's Feng Quits Banking, Seeks State Career (Update4)
2008-03-06 07:15 (New York)
(Adds Merrill's earnings in 12th paragraph.)
By Cathy Chan
March 6 (Bloomberg) -- Wilson Feng, Merrill Lynch & Co.'s
China investment-banking chairman, resigned after four years
with the world's biggest brokerage and said he's looking for a
job at a state-owned company.
``I want to change my life,'' said Feng, 40, in a telephone
interview from Beijing. ``It's a nightmare. My father won't
recognize me if I stay in investment banking. I didn't see him
for almost three years.''
Merrill promoted Feng last year after he helped the New
York-based firm win a role in Industrial & Commercial Bank of
China Ltd.'s $16 billion Hong Kong stock sale in 2006. China
generated $2.13 billion of fees last year on a record $60 billion
of overseas share sales, with Merrill the top arranger of Chinese
offerings in the U.S., according to data compiled by Bloomberg.
Feng's resignation adds to the list of departures among
senior China bankers this year. Richard Ong, former Beijing-
based co-head of Asia investment banking at Goldman Sachs Group
Inc., quit in January after 15 years at the world's largest
securities firm.
Zha Xiangyang, chief executive officer of Goldman's China
securities venture, yesterday said he's resigned and plans to
help run a domestic private equity fund. Richard Stanley, former
China CEO of Citigroup Inc., quit in February to join DBS Group
Holdings Ltd., Southeast Asia's biggest bank by assets.
`Stay a Friend'
Feng, who was based in Hong Kong, said he left in January
and plans to join a large state-run company in China, without
being more specific. He said he wants to advance his career and
immerse himself in China's ``inner circles and systems.''
``Salaries at state-owned enterprises are low compared with
investment banking, but you can have a better life,'' he said.
Feng joined Merrill in 2004 as a junior banker after being
hired by Damian Chunilal, head of Pacific Rim investment
banking, and Liu Erhfei, the firm's China chairman. Chunilal and
Liu also hired Margaret Ren, the daughter-in-law of former
Chinese premier Zhao Ziyang and a former Citigroup Inc.
executive, in February last year. She holds the same position as
Feng did.
``It's sad to see him go. He leaves on the best of terms
and he will stay a friend of Merrill Lynch,'' Chunilal said in a
phone interview from London today. ``Wilson had talked to us
about moving on for some time, because he wanted to pursue a
different career in China.''
`Five Hours Sleep'
Feng said he spent 70 percent of his time on executing
deals, including managing and promoting the $3.3 billion initial
public offering of Shenhua Energy Co., the nation's largest coal
producer, in 2005 and the share sale of Dongfeng Motor Group
Co., China's third-biggest automaker, the same year.
``I never had five hours sleep during these four years,''
he said.
Merrill reported a record fourth-quarter loss in January
after $16.7 billion of writedowns on assets infected by subprime
mortgages. Chief Executive Officer John Thain, who replaced Stan
O'Neal in December after the home-loan business collapsed,
called the results ``unacceptable'' and said Merrill should stop
taking risks that could wipe out profit.
While Merrill was the top arranger of Chinese share sales
in the U.S., its overall ranking in overseas IPOs fell to sixth
last year from fourth in 2006, according to Bloomberg data.
Feng's departure won't slow Merrill's expansion in China,
the world's fastest-growing major economy, according to Chunilal.
Last year, the company hired Rodney Tsang from Credit Suisse
Group in Hong Kong to run private-industry banking in China.
``We continue to build our team in China to meet the
changing needs of businesses there,'' Chunilal said. ``The
private sector has grown dramatically in importance.''
--Editors: Brett Miller, Richard Bedard
2008-03-06 07:15 (New York)
(Adds Merrill's earnings in 12th paragraph.)
By Cathy Chan
March 6 (Bloomberg) -- Wilson Feng, Merrill Lynch & Co.'s
China investment-banking chairman, resigned after four years
with the world's biggest brokerage and said he's looking for a
job at a state-owned company.
``I want to change my life,'' said Feng, 40, in a telephone
interview from Beijing. ``It's a nightmare. My father won't
recognize me if I stay in investment banking. I didn't see him
for almost three years.''
Merrill promoted Feng last year after he helped the New
York-based firm win a role in Industrial & Commercial Bank of
China Ltd.'s $16 billion Hong Kong stock sale in 2006. China
generated $2.13 billion of fees last year on a record $60 billion
of overseas share sales, with Merrill the top arranger of Chinese
offerings in the U.S., according to data compiled by Bloomberg.
Feng's resignation adds to the list of departures among
senior China bankers this year. Richard Ong, former Beijing-
based co-head of Asia investment banking at Goldman Sachs Group
Inc., quit in January after 15 years at the world's largest
securities firm.
Zha Xiangyang, chief executive officer of Goldman's China
securities venture, yesterday said he's resigned and plans to
help run a domestic private equity fund. Richard Stanley, former
China CEO of Citigroup Inc., quit in February to join DBS Group
Holdings Ltd., Southeast Asia's biggest bank by assets.
`Stay a Friend'
Feng, who was based in Hong Kong, said he left in January
and plans to join a large state-run company in China, without
being more specific. He said he wants to advance his career and
immerse himself in China's ``inner circles and systems.''
``Salaries at state-owned enterprises are low compared with
investment banking, but you can have a better life,'' he said.
Feng joined Merrill in 2004 as a junior banker after being
hired by Damian Chunilal, head of Pacific Rim investment
banking, and Liu Erhfei, the firm's China chairman. Chunilal and
Liu also hired Margaret Ren, the daughter-in-law of former
Chinese premier Zhao Ziyang and a former Citigroup Inc.
executive, in February last year. She holds the same position as
Feng did.
``It's sad to see him go. He leaves on the best of terms
and he will stay a friend of Merrill Lynch,'' Chunilal said in a
phone interview from London today. ``Wilson had talked to us
about moving on for some time, because he wanted to pursue a
different career in China.''
`Five Hours Sleep'
Feng said he spent 70 percent of his time on executing
deals, including managing and promoting the $3.3 billion initial
public offering of Shenhua Energy Co., the nation's largest coal
producer, in 2005 and the share sale of Dongfeng Motor Group
Co., China's third-biggest automaker, the same year.
``I never had five hours sleep during these four years,''
he said.
Merrill reported a record fourth-quarter loss in January
after $16.7 billion of writedowns on assets infected by subprime
mortgages. Chief Executive Officer John Thain, who replaced Stan
O'Neal in December after the home-loan business collapsed,
called the results ``unacceptable'' and said Merrill should stop
taking risks that could wipe out profit.
While Merrill was the top arranger of Chinese share sales
in the U.S., its overall ranking in overseas IPOs fell to sixth
last year from fourth in 2006, according to Bloomberg data.
Feng's departure won't slow Merrill's expansion in China,
the world's fastest-growing major economy, according to Chunilal.
Last year, the company hired Rodney Tsang from Credit Suisse
Group in Hong Kong to run private-industry banking in China.
``We continue to build our team in China to meet the
changing needs of businesses there,'' Chunilal said. ``The
private sector has grown dramatically in importance.''
--Editors: Brett Miller, Richard Bedard