By Anniek Bao

China Merchants Bank shares fell in Hong Kong after the Chinese lender voted to remove its president and give control to a 27-year company veteran.

Shares fell as much as 13% to 52.30 Hong Kong dollars (US$6.67) Tuesday morning, putting them on track for their biggest one-day loss in more than a decade.

Shenzhen-based China Merchants Bank said late Monday that its board had voted unanimously to remove Tian Huiyu from positions of president and director, "subject to further assignment." The removal came into effect during a board meeting on Monday, which the company said Mr. Tian didn't attend for personal reasons. The board said it acknowledged Mr. Tian's contributions to the company "with deepest gratitude."

The board also voted to make Wang Liang, who holds the positions of executive director and chief financial officer, among others, "in charge" of the bank's work. Mr. Wang joined the bank in 1995.

"The move is not likely to affect their business too much," said Richard Cao, an analyst at Guotai Junan Securities, citing the company's relatively mature business framework. Investors are reacting to the move, "which is not unusual" in the event of sudden leadership change, "but market is probably now over-reacting."

Shares resumed trading Tuesday following a long weekend in Hong Kong.

China Merchants Bank's Shanghai-listed shares are trading 2.5% lower, taking its losses this week to 9.7%.


Write to Anniek Bao at anniek.bao@wsj.com


(END) Dow Jones Newswires

04-19-22 0026ET