China has made a change at the top of its securities regulator amidst growing frustration over the recent stock market downturn.
Wu Qing, a seasoned figure in banking and former deputy party secretary of Shanghai has been appointed as the new chairman and party secretary of the China Securities Regulatory Commission (CSRC), replacing Yi Huiman, who held the position since January 2019, as reported by state news agency Xinhua on Wednesday.
Wu, aged 59, brings extensive experience, having previously served as chairman of the Shanghai Stock Exchange from 2016 to 2018, and with a background spanning two decades in financial regulation, including roles at the CSRC.
While Chinese stock markets have shown signs of stabilization this week, they experienced significant challenges throughout 2023, emerging as the world’s worst performers for the year.
The combined market value loss in Chinese and Hong Kong markets since their peaks in February 2021 amounted to about $6.1 trillion by Monday.
A considerable number of Chinese citizens have turned to the US Embassy’s social media platform in Beijing to express their frustrations regarding the stock market after other avenues for protest had been closed off.
Efforts are underway by officials to address the market downturn.
Central Huijin Investment, the equity arm of China’s sovereign wealth fund, announced plans to increase share purchases on Tuesday.
Following this, the CSRC issued a statement expressing full support for Central Huijin Investment’s initiative.
Wednesday saw mainland Chinese stock markets posting a second consecutive day of gains, with the Shanghai Composite Index rising by 1.4% and the Shenzhen Component Index surging by 2.9%.
While these intensified efforts aim to stabilize Chinese stocks and buy time for Beijing, they do not resolve the fundamental economic challenges facing the country, including weakened demand, deflationary pressures, a struggling real estate sector, and escalating trade tensions with the United States.
A brief period of market calm earlier was disrupted when a Hong Kong court ordered Evergrande, a prominent figure in China’s property crisis, to liquidate, prompting renewed investor concerns.
