Cheah Cheng Hye, the founder of Value Partners Group Ltd, is set to step down from his role as Co-Chairman as Chinese brokerage GF Securities Co, the hedge fund's largest shareholder, continues to assert control over the firm.

The report cites an unnamed source familiar with the matter as revealing that Cheah, who will stay on as a board member, has informed select board members and senior management of his decision. Cheah co-founded Value Partners in 1993, and the firm has since expanded its presence with offices across China, Kuala Lumpur, Singapore, and London, managing $5.4bn in assets.

In a recent reshuffle, GF Securities, which became the firm's targets shareholder a year ago, replaced Louis So as co-chairman with its own executive, Lin Xianghong. So, who still serves as Co-Chief Investment Officer alongside Cheah, is now planning to leave the firm after more than ten years, according to the same source. These changes are expected to take effect in January of next year.

A representative for Value Partners stated that the roles of Cheah and So have not changed but declined to provide further details. Cheah and So did not respond to requests for comment.

GF Securities, which acquired a 20.2% stake from the founders last year, has been pushing to expand its operations overseas, including in Hong Kong. The recent board changes also saw the resignation of Norman Ho, who will now focus solely on his role as Senior Investment Director, and the appointment of Li Qian from GF Securities as a new Director.