Guo Shuqing, governor of Shandong province, was appointed as chairman of the China Banking Regulatory Commission on Feb 24, 2017. [Photo/China Daily]

Experts see reforms veteran aiding regulatory coordination

The appointment of Guo Shuqing, governor of Shandong province, as chairman of the China Banking Regulatory Commission on Friday, will benefit the financial services sector in terms of reform, risk control and coordination with regulators of related industries, said researchers and economists.

Guo, 60, replaces the retiring Shang Fulin, 65, who has been CBRC chairman since October 2011. Born in August 1956, Guo gathered rich experience in economic and financial sectors before his appointment as Shandong governor.

He helped design the country's economic reform system in the 1980s and 1990s. He was later named vice-president of the People's Bank of China, the central bank, and administrator of the State Administration of Foreign Exchange in 2001.

He went on to become chairman of China Construction Bank Corp in 2005 and chairman of the China Securities Regulatory Commission in 2011.

Wu Qing, a banking research fellow with the Development Research Center of the State Council, who received academic guidance from Guo, said as a high-ranking official and a long-term expert on Chinese economic reform and financial regulation, Guo had shown strong administrative skills, which would now strengthen the financial sector.

"China still has a long way to go in terms of financial reform, which requires a leader such as Guo, who has courage and insight to take tough decisions based on his knowledge and experience. I believe he is a man with lofty goals who can get the job done," Wu said.

Zhou Jingtong, a senior economist with the Institute of International Finance at Bank of China Ltd, said: "Guo's experience as a banker, a provincial governor and head of China's top securities regulator, combined with his deep understanding of macroeconomics, will help him fight against major financial risks, many of which are associated with banks and local governments."

Guo's appointment has raised positive market expectations, said Qu Tianshi, an economist at ANZ Group.

"His experience at the central bank and the China Securities Regulatory Commission enabled him to strengthen communication with other financial regulators. It will further help improve regulatory coordination among the central bank and the other three financial regulators," Qu said.

Yang Tao, assistant director of the Institute of Finance and Banking under the Chinese Academy of Social Sciences, said the post of CBRC chairman requires the incumbent to enhance financial regulatory coordination, as financial risks often surface in areas not clearly marked to be under the purview of any sectoral regulator.

Li Xiang contributed to the story.