Xiao Gang is the new Head of China’s Securities Regulator after resigning from the position of Chairman of Bank of China. Xiao thereby succeeds Guo Shuqing. The news has been confirmed by a person with direct knowledge to this matter; however, as he is not authorized to speak on this matter in front of media, he has chosen not to disclose his identity.
The appointment was announced at a meeting to the staff members of the China Securities Regulatory Commission. Future role of Guo was not discussed during the meeting. On the other hand, Bank of China has made a statement to the Hong Kong’s stock exchange acknowledging resignation of Xiao. According to the statement, this had to be done based on the needs of the financial work of the country, however, no further elaboration was given.
China is definitely going through a transition phase at this point of time. Xi Jinping has been appointed as the new President of the country, whereas, Li Keqiang has been made the new Premier. The Railway Ministry was split in a historic decision, some new Foreign Ministers were selected and Zhou Xiaochuan has been reappointed as the Governor of the Central Bank. During his first ever press briefing as the new Premier, Li pledged to continue with the financial reforms in China, the Asian powerhouse and the 2nd biggest economy in the world.
Xiao, incidentally, has worked in various positions of the Chinese Central Bank for over 20 years, as mentioned in the annual report of the Bank of China. He even went on to become the Deputy Governor of the Central Bank, before joining the Bank of China. Incidentally, the Bank of China is the 4th biggest listed lender in the country.
All the top jobs at ICBC, Bank of China and other large state owned banks of companies are assigned by the Communist Party’s central organization unit; just like the major party and Government posts. The executives, who are members of the party as well, have to stay under the oversight of the disciplinary committee.
Since 2006 (This is when the shares of Bank of China started trading in Shanghai and Hong Kong), the profit of Bank of China has increased by 31% on an average each year. However, stock prices have declined by 39% in the last 5 years in Shanghai.