China’s central bank, the People’s Bank of China (PBOC), has appointed Pan Gongsheng as its new party secretary. Pan Gongsheng, who previously served as the head of the country’s foreign exchange regulator, will now hold a significant position of influence within the institution. In the Chinese political system, the party secretary of an organization typically wields considerable power.
This appointment comes as part of broader leadership changes unfolding in Beijing. President Xi Jinping was granted an unprecedented third term during the Communist Party’s twice-a-decade congress in October and an annual parliamentary meeting in March.
The PBOC’s previous party secretary, Guo Shuqing, who also headed the China Banking and Insurance Regulatory Commission, will transition to the National Financial Regulatory Administration following a financial regulatory overhaul announced in March. It is worth noting that Yi Gang, the current PBOC governor, was removed from his role as deputy party secretary, but it is unclear whether he will also leave his position as governor.
These changes come at a time when China’s economic growth has slowed and the yuan has weakened against the U.S. dollar. The central bank responded to these challenges by cutting major interest rates for the first time in months in June.
Additionally, the Chinese government has shown an increased focus on addressing financial risks, dedicating a section in its annual work report to prevent and defuse major risks, particularly in real estate and local government debt.
Pan Gongsheng appointed as the party secretary of the People’s Bank of China.
In China, the party secretary holds significant influence within institutions under the rule of the Communist Party.
Pan’s appointment to the role coincides with ongoing leadership changes in Beijing. President Xi Jinping secured an unprecedented third term during the Party’s congress in October and the annual parliamentary meeting in March.
The previous party secretary of the PBOC, Guo Shuqing, served as the head of the China Banking and Insurance Regulatory Commission.
As part of a financial regulatory overhaul set to take effect this year, the institution headed by Guo Shuqing was absorbed into the National Financial Regulatory Administration.
Li Yunze, a member of the younger 1970s generation, holds the dual positions of party secretary and director of the National Financial Regulatory Administration. This makes him a noteworthy minister-level appointee within the administration.
According to the announcement on Saturday, PBOC Governor Yi Gang has been removed from his position as deputy party secretary. The central bank has not provided any information regarding whether Yi will also be leaving his role as governor.
Pan’s appointment coincides with a period of slowed economic growth in China and a weakening yuan against the U.S. dollar. In June, the central bank made its first cut to major interest rates in several months.
In response to growing financial risks, Beijing has intensified its efforts in addressing these concerns. This year, the Chinese government allocated a dedicated section in its annual work report to address the prevention and mitigation of major risks, with particular emphasis on real estate and local government debt.
Source : cnbc.com
