The China Securities Regulatory Commission appoints a new Chairman with new plans

YI Huiman, the newly appointed chairman of the China Securities Regulatory Commission (CSRC), could introduce innovative strategies to boost the country’s capital markets, experts say.

YI Huiman, former chairman of the Industrial and Commercial Bank of China (ICBC), was appointed Chairman of the China Securities Regulatory Commission (CSRC), taking over LIU Shiyu’s responsibilities, as Xinhua reported on the weekend.

“As an experienced business leader, the hiring of YI Huiman is an important signal that China is continuing to push the agenda set out in the Third Plenary Session of the 18th Party Congress announced in November 2013 – allowing the markets to play a decisive role. As an entrepreneur, Mr Yi understands the capital markets more from a market perspective,” commented Andrew Methven, Head of Strategic Consultancy at Hampton Group. “Mr Yi could take action to encourage investment firms to play a more important role as a market-based and efficient way to stimulate the market.” Chinese investment firms acting as investment banks, brokers or asset managers are crucial entities in the capital markets, but face a much less favourable regulatory environment than their global competitors.

YI Huiman began his career as a junior loan officer with ICBC in Zhejiang Province in 1985, spent 34 years with the world’s largest lender, and was appointed chairman in 2016. Due to his rich experience in the financial sector, where he had to make market-based decisions in real time, YI Huiman was rarely exposed to regulatory work, which distinguishes him from his predecessors.

DONG Dengxin, Director of the Wuhan University of Science and Technology’s Institute of Finance and Securities, agrees that YI Huiman would stick more to market-oriented measures to develop the capital markets. For example, YI Huiman could rationalise bond issuance procedures and avoid excessive administrative controls to address funding issues in the private sector.

In October, YI Huiman said liquidity bottlenecks in private companies were partly due to clogged direct funding channels, including difficulties in issuing bonds.

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