Lufax Taps New CEO as Ping An Deepens Influence Amidst Turmoil

SHANGHAI – February 17, 2026

Lufax Holding Ltd. (NYSE: LU, HKEX: 6623) today announced a major leadership overhaul, appointing Co-CEO Xiang Ji to the top executive role as the company navigates severe financial headwinds and a complex regulatory environment. The shake-up includes the departure of current CEO Yong Suk Cho and the appointment of two senior executives from its controlling shareholder, Ping An Group, to its board, signaling a significant tightening of the parent company's influence over the embattled financial services enabler.

The announcement comes as Lufax attempts to chart a new course after a period of significant financial decline and mounting operational challenges. The move to install a new chief executive with deep experience in risk management and retail banking, alongside directors directly from Ping An's senior ranks, suggests a strategic recalibration aimed at stabilization and deeper integration with its parent.

A Changing of the Guard Amidst Financial Headwinds

The transition follows a prolonged period of deteriorating performance under outgoing CEO Yong Suk Cho, who is stepping down for “family and personal considerations” upon his contract's expiration on March 31. Under his leadership, Lufax’s financial health has declined sharply. After posting a net profit of RMB7.9 billion in 2022, the company saw its profits plummet by over 88% in 2023. The downturn steepened dramatically in 2024, with the company reporting a net loss of RMB3.6 billion.

This financial slide is reflected in its core business operations. The outstanding balance of loans facilitated by Lufax has contracted significantly, falling from RMB576.5 billion in 2022 to just RMB216.9 billion by the end of 2024. Concurrently, the company's assumption of risk has soared. Lufax's credit risk exposure on its loan portfolio jumped from 23.5% in 2022 to a staggering 74.5% in 2024. This increase is largely attributable to a strategic pivot towards a "100% guarantee model," a move intended to improve long-term profitability but which has resulted in significant short-term accounting losses and higher upfront provisioning.

Compounding the company's struggles have been serious compliance issues. Lufax's 2024 annual report, filed today, disclosed a restatement of its 2022 and 2023 consolidated financial statements and included a stark warning that investors should no longer rely on those previous filings. This followed a change of auditor and a suspension of its Hong Kong-listed shares, events tied to disagreements over related-party transactions that have highlighted the structural and regulatory risks facing the firm.

Enter the Strategist: A New Vision for Lufax?

Into this challenging environment steps Xiang Ji, who will officially take the helm as CEO and executive Director on April 1. Mr. Ji, aged 43, is a seasoned executive with nearly two decades of cross-industry experience in retail credit, risk management, and investment. His background suggests a strategic focus on operational discipline and sophisticated risk management will be central to his tenure.

Before joining Lufax as Co-CEO in October 2025, Mr. Ji was a Global Managing Partner at McKinsey & Company, where he led the consulting giant's Asia Retail Banking Business. During his tenure, McKinsey's analysis of the Asian banking sector frequently highlighted the need for financial institutions to revamp business models in response to shifting consumer behavior, new regulatory pressures, and the rise of non-traditional competitors. His expertise in navigating these exact dynamics will be critical as Lufax seeks to regain its footing.

More recently, Mr. Ji has been integrated into the Ping An and Lufax ecosystem, serving as chairman of key subsidiaries like Ping An Rongyi (Jiangsu) Financing Guarantee Co., Ltd. This direct experience in the financing guarantee sector aligns perfectly with Lufax's current business model and suggests the new leadership is poised to refine, rather than abandon, the company's risk-heavy strategy, albeit with a renewed focus on efficiency and control.

The Expanding Shadow of Ping An

The leadership changes extend deep into the boardroom and solidify the influence of Lufax's parent company, Ping An Group. Alongside the CEO transition, Lufax announced the resignations of non-executive Directors Yonglin Xie and Xin Fu, and the appointment of Ms. Fangfang Cai and Mr. Peifeng Li to replace them. Both new directors are long-serving, high-ranking executives within Ping An.

Ms. Cai has been an executive director of Ping An Group since 2014 and previously served as its Chief Human Resources Officer, while also sitting on the boards of multiple Ping An subsidiaries. Mr. Li is the current general manager of Ping An Group's finance department. Their appointments give the parent company a more direct hand in Lufax's governance and strategic direction at a critical juncture.

This move is the culmination of Ping An's steadily increasing control. The insurance and financial services behemoth saw its stake in Lufax grow from 41.4% to 56.82% in mid-2024, making it the controlling shareholder. By the end of the year, Ping An had further increased its ownership to nearly 67%. This deepening control suggests Ping An is moving to stabilize its subsidiary, leveraging its vast resources in branding, technology, and capital to steer Lufax through its current turmoil. The parent company has publicly stated its intention for Lufax to continue its main business, viewing it as a strategic asset within its broader financial ecosystem.

Navigating a Treacherous Market

Lufax's internal restructuring is set against the backdrop of a rapidly evolving, yet challenging, Chinese financial landscape. On one hand, the digital lending market in China is booming, with projections showing the market size more than doubling to $123.78 billion by 2031. Government support has also improved credit access for tech-focused small and medium-sized enterprises (SMEs), Lufax's target clientele.

However, the industry faces powerful headwinds. An ongoing "credit correction" driven by a slump in the property sector, coupled with deflationary pressures, has weakened China's economic outlook. This has curbed demand for credit among small business owners while increasing regulatory scrutiny over the entire fintech sector. Stricter rules on online lending, data security, and risk assessment are raising compliance costs and reshaping business models.

The market's initial reaction to the leadership announcement was positive, with Lufax's NYSE-listed shares rising in pre-market trading. Yet, the broader analyst consensus remains a "Sell," reflecting deep-seated concerns about the company's profitability and the structural risks of operating in China's tightly controlled financial system. The new leadership team, now backed by the full weight of Ping An, faces the monumental task of not only executing an internal turnaround but also proving its model can thrive amidst intense competition and an uncertain economic and regulatory climate.