BEIJING: China has replaced the head of its securities regulator, according to the official Xinhua news agency on Wednesday ( Feb 7 ), as policymakers work to stabilize the nation’s main stock indexes following a drop to five-year lows.
According to Xinhua, the cabinet replaced Yi Huiman as chairman of the China Securities Regulatory Commission ( CSRC ) with Wu Qing, a seasoned securities regulator who had previously overseen the Shanghai Stock Exchange and held important municipal government positions in Shanghai.
Yi’s dismissal occurs as Foreign businesses are on the verge of collapse, with confidence being severely weighed down by the faltering economy and a lack of strong stimulus measures. Investors of all sizes are scrambling to minimize their costs.
Many market-focused help measures, such as limitations on short-selling or reductions in buying duties, have failed to stop the selloff, since have several government statements that promise support but lack specifics.
The majority of large investors claim they are anticipating a spending plan to assist communities. A recent Bloomberg News report on a proposed 2 trillion yuan ( US$ 278 billion ) stock market loan bank has not received any official confirmation or denial.
A gross 18.2 billion yuan was sold by foreign investors in Chinese equities last month, marking the seventh consecutive quarter of outflows.
Yi served as chairman of the Industrial and Commercial Bank of China ( ICBC ) before taking over as head of CSRC. He had spent more than three decades working at the express bank as an ICBC stalwart. In 1985, he started working for ICBC in the province of Zhejiang as a young mortgage official.
According to Xinhua, Wu likewise took Yi’s place as the head of the Communist Party at the regulation.
According to a former CSRC established, the statement lacks the typical phrase” to be appointed to various roles,” which typically implies an cheerful chairman is moving to pack in another placement.