Chinese state media reported that the Chinese government has decided to replace the head of the securities administration, which was responsible for measures to stem the decline in stock prices. The reason has not been made clear, but the market is pointing out that the drop in stock prices may have been the reason for his dismissal.
According to China's state-run Xinhua News Agency, on the 7th, the Chinese government decided to retire the head of the Securities Regulatory Commission, Chairman Yi Huiman, and to replace him with Wu Qing, deputy secretary of the Shanghai Communist Party Committee. .
The Securities Regulatory Commission is an organization that not only supervises the detection of fraudulent stock transactions, but also decides on policies related to stock market operations, and Mr. Yi has served as its chairman since January 2019.
The reason for this personnel change has not been disclosed.
In China, stock prices continued to decline due to factors such as the real estate recession, and this committee was responsible for taking measures to halt the decline in stock prices.
Since late January, a series of countermeasures have been taken, including restricting short selling and strengthening regulations, as well as encouraging listed companies to buy back their own shares.
The market is also pointing to the possibility that the head of this committee, Chairman Yi, may have been removed due to the decline in stock prices.