In Beijing, China promoted Pan Gongsheng, a technocrat known for extinguishing crises, to the position of the new governor of the People’s Bank of China (PBOC) this month.
China appoints new central bank governor: State media named Pan, who until 2016 oversaw China’s top foreign exchange regulator, on Tuesday as Yi Gang’s replacement, making him the first person since Yi’s predecessor Zhou Xiaochun to hold both positions.
China promoted Pan Gongsheng, a technocrat known for extinguishing crises, to the position of the new governor of the People’s Bank of China (PBOC) this month. In addition to reforming state banking, strengthening controls on the real estate market and technology, and outlawing cryptocurrencies, he has gained renown for taking a firm position against currency speculators.
A slowdown in China’s property market, which makes up roughly a quarter of all economic activity, and a mountain of local government debt present significant problems for the banking industry and the overall economy, respectively, when he assumes his new position.
Pan, the head of the PBOC, was met by U.S. Treasury Secretary Janet Yellen during her visit to Beijing this month.
As China has taken steps this year to tighten party control over the financial system, including plans for a Central Financial Commission to oversee the PBOC and other institutions, the central bank now reports into new regulators even though Pan will serve as both the Communist party head at the PBOC and the central bank governor.
The new structure dampens expectations. Like his two predecessors, Pan might support pro-market measures.
According to state media, China fired Yi Gang as governor of the central bank.