On Saturday, Pan Gongsheng, head of the Chinese foreign exchange regulator, was named to the position of party secretary for the People's Bank of China. This is seen as the most important role in a Chinese state where the Communist Party of China is in power. With Pan's appointment, Beijing goes on with its leadership changes, particularly those connected to financial regulation.
On Saturday, the People's Bank of China announced Pan Gongsheng, the head of the country's foreign exchange regulator, as the central bank's new party secretary. As it is conventionally accepted in China - ruled by the Communist Party - that the party secretary of a particular institution holds the most clout, Pan's appointment follows the leadership changes that were rolled out during the nation's twice-a-decade congress in October and its annual parliamentary meeting in March, which saw President Xi Jinping's re-election for an unprecedented third term. Moreover, prior to this appointment, the PBOC's party secretary, Guo Shuqing, was the head of the China Banking and Insurance Regulatory Commission. In March this year, a decision was made to incorporate the CBIRC into the National Financial Regulatory Administration, which consequently appointed Minister-level appointee Li Yunze, of the younger 1970s generation, as its party secretary and director.
Yi Gang was removed from the position of deputy party secretary as announced on Saturday. It remains unclear whether he will also step down from his post as PBOC governor.Pan's appointment follows a period of economic deceleration in China and a decline in the yuan against the US dollar. In June, the central bank cut the important benchmark interest rates for the first time in a few months.Subsequently, Beijing has put more focus on tackling existing financial risks. The Chinese government declared in its yearly work report that it will be taking steps to avert and resolve any significant dangers; with special attention being given to the real estate and local government debt markets.
Read more about China from CNBC Pro, Bernstein recommending to purchase a Chinese personal finance stock that can possibly rally up to nearly 60%, Morgan Stanley naming two semiconductor stocks with significant potential gains in light of China banning Micron, and a fund implementing an innovative approach to investing in emerging markets by placing bets from Nvidia to Chinese spirits.
Bernstein has advised investors to purchase a personal finance stock originating in China that has the potential to gain up to 60%. Morgan Stanley has flagged two semiconductor stocks as having 'significant upside' in the wake of China's prohibition of Micron. This fund focuses on emerging markets investing with investments such as Nvidia and Chinese alcoholic beverages.
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