Zhongtai Securities Removes Research Chief After Controversial Report

What’s New: Li Xunlei, director of the research unit of Zhongtai Securities, was removed from his post and replaced by deputy director Dai Zhifeng, the Shandong-based brokerage said Thursday.

Li, who joined Zhongtai in 2017, remains the brokerage’s chief economist.

Background: The shakeup at the top of Zhongtai’s research arm followed a controversial report regarding China’s unemployment posted online April 26 by Li’s team. The report, discussing methods for calculating China’s unemployment rate, triggered heated debates over its methodology and accuracy.

Some criticized the paper for exaggerating China’s jobless population. The article was removed from the internet the same day.

A Zhongtai Securities source said the personnel changes were decided far earlier and had nothing to do with the report.

In an article published Thursday, Li said he was not the author of the disputed report and online commentators misunderstood the research and spread rumors about it.

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Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bobsimison@caixin.com)