Speculations abound as to who will become the new head of People’s Bank of China (PBOC)—the country’s Central Bank. Five candidates are in the running as markets worry about continued reform.
Zhou Xiaochuan, the current governor failed to be reelected as a member of the Party’s Central Committee during the 18th Party Congress and is expected to retire as he is already 65 years old. According to the convention of the Chinese Communist Party (CCP), membership in the Central Committee is required to assume the head position of the PBOC.
The five financial officials elected to the Party’s Central Committee during the 18th Party Congress are likely candidates. They include Guo Shuqing, chairman of China Securities Regulatory Commission (CSRC); Xiang Junbo, chairman of China Insurance Regulatory Commission; and Shang Fulin, chairman of China Banking Regulatory Commission.
Guo Shuqing
Oxford-educated Guo Shuqing, 56, is the top candidate so far. When Guo worked at the State Development Planning Commission, he conducted research under the tutelage of Wu Jinglian, one of China’s top economists, charting the course of China’s national economic reform.
Since becoming chairman of the CSRC in October 2011, Guo has installed several new policies such as mandatory dividend payments by listed companies, zero tolerance of insider trading, IPO system reform, and encouragement of innovations in securities trading, according to state media reports.
The Southern People Weekly said that within 100 days of his taking the position, Guo turned from being a mere scholar on reform to an implementer. During an interview with Japan’s Asahi Shimbun, he said he “believes in the market and in reform.”
Xiang Junbo
Xiang Junbo, 55, has a PhD in law from Peking University and is a former chairman of the Agricultural Bank of China. The bank’s non-performing loans dropped significantly after he joined the bank in 2007, according to Radio France Internationale (RFI). Xiang is presently chairman of China Insurance Regulatory Commission.
Shang Fulin
Shang Fulin, 61, is chairman of China Banking Regulatory Commission. He has a Ph.D. in finance, and has already worked at the PBOC for many years. Shang is known for his prudence.
Future Uncertainties
The PBOC is part of the State Council. All important decisions, including interest rate adjustments, are made by the State Council. Analysts believe that the departure of current head Zhou Xiaochuan will not have any immediate impact on China’s currency policies.
