China will replace its chief markets regulator, an ex-banker who has come under fire for dragging his heels on much-needed reform, a government source familiar with the situation said on Wednesday.
Shang Fulin, who took over from current central bank governor Zhou Xiaochuan as head of the China Securities Regulatory Commission (CSRC) less than two years ago, would be appointed to the China Banking Regulatory Commission, the source told Reuters.
Huang Qifan, the vice-mayor of the huge southwestern city of Chongqing and a former senior official with the government of Shanghai, would take up Shang's vacated post, he added. The government source gave no reason for the shuffle. A CSRC spokesman declined to comment.
Before a technical rebound that kicked in on Tuesday - partly fanned by talk in markets of Shang's imminent removal - China's stock market had plunged about 30 percent since early April, hit mainly by nation-wide economic-cooling steps. The key stock index had hit its lowest levels in more than five years every day from Wednesday to Monday.
Industry experts and officials complained that regulators had done little after a flurry of reforms spurred by Shang's predecessor, Zhou. Others were surprised that an ex-banker and industry outsider had been appointed to such a crucial post.
On Wednesday, state media reported that the State Council, or cabinet, had removed Laura Cha, a former Hong Kong bourse vice chairman, from her post as CSRC vice chairman.