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China has replaced the head of its securities regulator, the China Securities Regulatory Commission (CSRC), according to the official Xinhua news agency.
The new appointee is a seasoned regulator known for taking stern action, a move aimed at stabilizing the country's stock markets amidst ongoing challenges. Wu Qing, who previously led the Shanghai Stock Exchange and held a key position in Shanghai's municipal government, will now serve as the chairman of the CSRC, replacing Yi Huiman.
The specific reason for Yi's removal was not disclosed. This development comes at a time when China's stock markets have been experiencing significant declines, causing both institutional and retail investors to make efforts to minimize their losses. The struggling economy, coupled with a lack of robust government stimulus measures, has eroded investor confidence.
The Chinese markets have faced persistent turmoil since 2019, first due to the trade tensions with the United States, followed by the crisis in the real estate market triggered by the collapse of the heavily indebted company, China Evergrande.
Despite several market-focused support measures, such as restrictions on short-selling and reductions in trading costs, the sell-off has continued unabated. Government statements promising support have lacked specificity, further failing to halt the downturn.
Yi's departure coincides with the upcoming long Lunar New Year break, during which trading in Chinese stocks will be suspended for a week, allowing the markets to digest this leadership change.
