New chief named for bank regulator

The appointment on Feb 24 of Guo Shuqing, governor of Shandong province, as chairman of the China Banking Regulatory Commission will benefit the financial services sector in its reform, risk control and coordination efforts with regulators of related industries, according to researchers and economists.

Guo, 60, replaces retiring Shang Fulin, 65, who has been CBRC chairman since October 2011.

Born in August 1956, Guo gathered rich experience in economic and financial sectors before being named Shandong's governor.

He helped design the country's economic reforms in the 1980s and 1990s and in 2001 was named vice-president of the People's Bank of China, the central bank, as well as administrator of the State Administration of Foreign Exchange.

Guo went on to become chairman of China Construction Bank Corp in 2005 and chairman of the China Securities Regulatory Commission in 2011.

Wu Qing, a banking research fellow at the Development Research Center of the State Council, once received academic guidance from Guo. As a high-ranking official and expert on Chinese economic reform and financial regulation, Guo has shown strong administrative skills that will strengthen the financial sector, Wu says:

"China still has a long way to go in terms of financial reform, which requires a leader such as Guo, who has the courage and insight to make tough decisions based on his knowledge and experience. I believe he is a man with lofty goals who can get the job done."

According to Zhou Jingtong, a senior economist at Bank of China's Institute of International Finance, "Guo's experience as a banker, provincial governor and head of China's top securities regulator, combined with his deep understanding of macroeconomics, will help him avoid major financial risks, many of which are associated with banks and local governments."

Guo's appointment has raised positive market expectations, says Qu Tianshi, an economist at ANZ Group.

"His experience at the central bank and the China Securities Regulatory Commission enabled him to strengthen communication with other financial regulators. It will further help improve regulatory coordination between the central bank and the other three financial regulators," Qu says.

Yang Tao, assistant director of the Institute of Finance and Banking under the Chinese Academy of Social Sciences, says the job of CBRC chairman requires the incumbent to enhance financial regulatory coordination, as financial risks often surface in areas not clearly under the purview of any particular sector regulator.

Li Xiang contributed to the story.

jiangxueqing@chinadaily.com.cn

(China Daily European Weekly 03/03/2017 page27)