China has made changes to its securities regulation sector by removing the boss, Xiao Gang, in a move to combat the vitality that is experienced in its stock market.
Liu Shiyu replaces Xiao Gang as the new chairman to the Securities Regulatory Commission (CSRC) in China. That is according to reports provided by the state media.
When the Chinese markets crashed in mid-2015, it is Xiao Gang that was in control.
There is a time when the Shenzhen and the Shanghai market encountered a loss of up to 40% of its overall worth.
The 57-year old was made the chairperson of CSRC in March 2013. He has undergone criticism that he mishandled the whole crisis.
It is during his watch that the “circuit-breaker” mechanism was deployed. This is a technique that China uses so as to reduce market sell-off. The technique did not work as it caused further panic.
According to the analysts, a person was needed to bear the responsibility for the failure of the circuit-breaker system. It only happened that Xiao Gang was that person.
Mr. Liu who takes over of the Securities Regulatory Commission (CSRC) was earlier on the VC of China’s Central Bank. In the year 2012, he was made the chairman of China’s third largest lender, the Agricultural Bank of China.
Different commentators had varied views concerning this appointment. Some played around with his name trying to figure out whether he will leave a “dead fish” behind or he will cause a “bull market.”
This announcement about the employment of a new CSRC head has been made at a time when there are two major events waiting to happen. Next week there will be a meeting in Shanghai of G20 financial leaders. There is also the coming together of China’s legislature that will happen in March this year.