China’s party congress hints at new PBoC chief

The National Congress of the Communist Party of China concluded on October 24 with the announcement of the composition of the party’s new central committee – the inner circle that people are eyeing for hints to the identity of the People’s Bank of China’s next chief.

At the closing session of the twice-a-decade congress, three out of four leading candidates to replace the retiring governor, Zhou Xiaochuan, were promoted to the 204-member central committee.

The new members are: Jiang Chaoliang, the communist party secretary of Hubei Province; Guo Shuqing, chairman of the China Banking Regulatory Commission; and Liu Shiyu, chairman of the China Securities Regulatory Commission. Another contender, PBoC vice-president Yi Gang, was elected as an alternate member.

China watchers believe the contest is likely to be between Guo and Jiang. Based on earlier practice, candidates for PBoC governor should be an official at the ministerial grade, preferably with experience as a member of the Communist central committee.

Guo gained membership of the central committee at the previous party congress five years ago. Jiang and Liu received their promotions this year.

At 60 years old, Guo is a key figure in China’s market reform camp, with extensive experience in the banking industry. His political journey started in the 1990s, and he has served as vice-president of the PBoC, director of the State Administration of Foreign Exchange, chairman of China Construction Bank and chairman of the China Securities Regulatory Commission.

Regulatory storm

Guo transferred to Shandong as governor in 2013, but returned to Beijing earlier this year to chair the banking regulator. He quickly launched a series of policies and guidelines aimed at deleveraging the financial system, dubbed a “regulatory storm” by state media.

Jiang is a veteran banker. He has extensive financial experience at the cities level, and led the PBoC’s Shenzhen and Guangzhou branch in the 1990s.

He also worked at the following: the Agricultural Bank of China, one of the big-four state-owned commercial banks; the Bank of Communications, one of the banks to issue banknotes in modern history; and the State Development Bank, a policy financial institution under the government’s state council.

For his communist party role, Jiang has been promoted three times since 2014, from vice-governor to governor in Jilin and finally to party secretary for Hubei province.

In a press conference held during the party congress last week, governor Zhou said he is likely to retire soon. It is widely anticipated that he will step down from his role later this year or early next year, as he will reach the typical retirement age of 70 in January.

Having taken over as head of the PBoC in 2002, Zhou is its longest-serving governor.