China Replaces Chief Securities Regulator; Market Slump Persists

China has replaced the head of its market watchdog, in an apparent attempt to restore confidence in financial markets following a prolonged downturn, as reported by the Associated Press (AP).

Wu Qing, a former chairman of the Shanghai Stock Exchange, will replace Yi Huiman as chairman and Communist Party chief of the China Securities Regulatory Commission (CSRC). I Photo: CGTN

Official media announced that Wu Qing, a former chairman of the Shanghai Stock Exchange, would replace Yi Huiman as chairman and Communist Party chief of the China Securities Regulatory Commission (CSRC).

Chinese stocks have been trading near 5-year lows despite various measures to stabilize the markets.

The official Xinhua News Agency gave no reason for Yi’s departure, but Chinese media said Wu was nicknamed “Broker Butcher” for his tough stance on enforcing rules against various abuses.

Wu, a banking industry veteran and former vice mayor of Shanghai, is expected to bring a fresh perspective.

Markets in Shanghai and Shenzhen have languished, partly due to heavy selling of property shares following a crackdown on excessive borrowing by developers.

Earlier this week, the CSRC announced a crackdown on insider trading, market manipulation, and other crimes to protect small investors. The appointment came during a week that has seen wild swings in share prices and despair among investors who have seen their investments evaporate.

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