The Bank of East Asia (0023) announced that after Li Guobao retired as chief executive in July, his two sons, Li Minqiao and Li Minbin, will take over as co-CEOs. The Bank of East Asia was incorporated in Hong Kong in 1918 by the current chairman Li Guobao’s grandfathers Li Guanchun and Li Zifang, Jane Dongpu, Zhou Shouchen, and Feng Pingshan. After a long time, he was controlled by the Lee family.
However, according to the East Asia 2018 Annual Report, as of the end of last year, the top four shareholders of East Asia were Japan’s Sumitomo Mitsui Bank (19.01%), Spain’s Criteria Caixa (17.3%), Malaysia Guohao Group (0053, 14.15%), and the US hedge Fund Elliott (8%).
In contrast, Li family members do not have much shareholding in East Asia. Li Guobao holds 3.35%, Li Guozhang holds 1.45%, Li Guoxing holds 0.61%, Li Guoshi holds 0.64%, Li Guobao’s two sons Li Minqiao and Li Minbin They held 0.11% of shares respectively. Why is the Li family still maintaining control over East Asia?