PBOC governor in focus amid leadership rejig

Bloomberg

Who will lead the People’s Bank of China’s (PBOC) is back in focus as a leadership reshuffle at government agencies and major financial regulators nears.
Two officials previously tipped as favourites by analysts are fading out of the picture, with one just starting a new job while the other is reportedly taking on a new role. Central bank veteran Yin Yong became Beijing city’s mayor last month, paving the way for senior positions down the road, while Yi Huiman, who currently heads the top securities watchdog, is likely to take over the banking regulator, Bloomberg reported.
A new potential candidate has emerged in the meantime: Zhu Hexin, 54, who is currently the chairman of the powerful state-owned conglomerate Citic Group Corp. Zhu is a former deputy governor of the PBOC and is seen by some analysts as a strong contender for the central bank’s top job.
“Officials with a diverse experience in local governments and corporates are increasingly promoted at financial regulators in recent years,” said Bruce Pang, chief economist for Greater China at Jones Lang LaSalle Inc. “Zhu has worked at all sectors including regional government, commercial banks and financial conglomerates.”
Current PBOC governor Yi Gang is close to the retirement age of 65 for ministers and
exited the ranks of the Communist Party’s most senior officials last October. Although Yi’s predecessor Zhou Xiaochuan stayed on as governor after he left the Central Committee, many analysts think Yi’s status and experience is not sufficient for him to be able to do that.
If Yi is replaced, the new governor will need to lead the central bank through a turbulent time, helping the economy get back on its feet following the messy Covid reopening and dealing with the worst property downturn on record to safeguard financial stability.
Another key task of the new leader will be to advocate for the central bank’s views within the government, as the PBOC is not an independent institution but answers to the State Council, China’s cabinet. That’s even more important now because the governor’s influence is seen as diminished compared to the when Zhou was in the role.
The leadership change may be revealed in March, when the national legislature meets and approves key members of the new government, including the premier.