China’s Stock Market Turbulence Forces Action Against Top Regulator

China has taken action to remove the head of its securities following the turbulence in the stock market over the last few months.

China has appointed a top state banking executive to replace the incumbent Securities Regulatory Commission Chairman Xiao Gang.

China’s leaders have been troubled by the instability in the market for some time now and its latest move is viewed as an attempt to restore confidence in the economy.

The announcement on the official Xinhua news agency on Saturday follows a string of assurances from senior leaders following the Lunar New Year holiday that China will underpin its slowing economy and steady its wobbly currency.

The news agency reported that Liu Shiyu, chairman of the Agricultural Bank of China Ltd (AgBank) (601288.SS) (1288.HK) and a former deputy governor of the central bank will now head the securities commission.

“Xiao’s departure is not a surprise following the recent stock disaster. This is a role vulnerable to public criticism because most Chinese retail investors are destined to lose money in such a market,” said Zhang Kaihua, a fund manager of Nanjing-based hedge fund Huyang Investment.