[MD Market Hot Topics]Will A-shares be operating after the replacement of Chairman Wu Qing of the China Securities Regulatory Commission?
The main leaders of the China Securities Regulatory Commission have been replaced. According to Xinhua News Agency, the Central Committee of the Communist Party of China and the State Council decided to remove Yi Huiman from his posts as Secretary of the Party Committee of the China Securities Regulatory Commission and Chairman of the China Securities Regulatory Commission, and appointed Wu Qing to take over.
When Wu Qing served as Vice Mayor of Hai, he worked with Li Qiang, who was regarded as the next Premier of the State Council and the then Secretary of the Shanghai Municipal Party Committee. He will serve as deputy secretary of the Shanghai Municipal Party Committee from July 2023, and concurrently as secretary of the Political and Legal Committee in August of the same year.
He served as Chairman and Party Secretary of the Shanghai Stock Exchange in 2016.
Last year, there was news in the market about the replacement of the China Securities Regulatory Commission. Due to his tough style, Wu Qing, who was called the “brokerage butcher” by the internal media, took over. At that time, it was reported that Yi Huiman would be transferred to the chairman of the Bank of China Insurance Regulatory Commission. In May last year, the state established a financial The General Administration of Supervision and Administration is headed by Li Yunze.
Before Wu Qing became the deputy mayor of Shanghai in 2018, he held various positions in the Shanghai Stock Exchange. After becoming the director of the Risk Disposal Office in 2005, he was responsible for the risk management of problematic securities companies. He had a tough style and dealt with 31 illegal securities companies, of which 26 companies were brought to justice. Due to the bankruptcy process, he was called the “brokerage butcher” by the industry and internal media. In 2010, he was the director of the Fund Department and became the chairman of the Shanghai Stock Exchange in 2016.
According to historical data, when the chairman of the China Securities Regulatory Commission changes, A-shares usually experience a big rise. Judging from the past takeovers of Liu Shiyu and Yi Huiman, the CSI 300 Index was at a relatively low level at that time. When Liu Shiyu took office in February 2016, the CSI 300 Index hit a low of 2,821 points in the same month. It has been rising since then, reaching a maximum of 4,403 points in January 2018. Later, Yi Huiman took office in January 2019. The CSI 300 Index was 3184 points the day before and rose to 5930 points in February 2021.
In February this year, the CSI 300 Index fell to a low of 3,108 points. The substitution of personnel despite frequent moves by the China Securities Regulatory Commission highlighted the determination of the central government and strengthened the market’s confidence. In the past, the chairman of the China Securities Regulatory Commission had a working background in the mainland banking system, but this time Wu Qing is focusing on supervision. The most famous ones include handling more than 30 illegal securities firms in 2005 and the rat warehouse case in 2009. The impact on the market will be Whether it will be the same as before is still unknown.
Some mainland netizens joked that the mainland government might consider having five officials take turns serving as the chairman of the China Securities Regulatory Commission on five trading days a week, so as to create a “long-term bull market” for A-shares.
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