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Meet China’s new securities regulator: the ‘broker butcher’ international business news

China surprises investors when name comes unexpectedly wu qingThe 58-year-old market veteran as the country’s new president and Communist Party chief securities regulator, The surprise appointment — just a day before markets closed for the Chinese New Year holidays — underscores the urgency with which Beijing is looking at addressing the country’s massive $8 trillion deficit. Share Market,
Here’s what we know about this important step in the world’s second-largest economy.
1. Why is ‘Wu King’ nicknamed?pimp butcher,
Wu earned the nickname ‘Broker Butcher’ during a previous stint at China’s Securities Regulatory Commission, when he shut down 31 companies for violations in the mid-2000s – nearly one-third of the total number of securities companies at the time. -It was a quarter. In 2009, he also led the charge to ban insider trading in mutual funds.
2. What is his background for this role?
Wu has years of political and financial experience, having led the Shanghai Stock Exchange for nearly two years and serving as a chief deputy in Shanghai’s municipal government before this latest appointment. In Shanghai, Wu’s responsibilities included overseeing the city’s finance industry and taxation, as well as the development of its free trade zones.
Wu also has important ties to China’s No. 2 official, Premier Li Qiang, having worked with him when Li was party chief of Shanghai. Wu was supposed to have been appointed last year to replace CSRC Chairman Yi Huiman, but he got promoted in Shanghai’s government instead.
3. What does Wu need to do in this new role?
chairman Xi Jinping Avoiding major financial risks has been made a top priority as authorities attempt to boost the post-Covid economy. This leaves Wu with a daunting task: China’s stock market has fallen for the fourth year in a row, losing $5 trillion. The country is also struggling to contain a real estate crisis, deflationary pressures and rising geopolitical tensions.
As part of his new portfolio, Wu will also need to help lure foreign financial firms to China at a time when Wall Street banks are all but reducing their onshore businesses amid economic and political headwinds.
4. What else do we know about him?
According to a person familiar with him, Wu is a low-key technocrat who has expressed zero tolerance for wrongdoing. He is sometimes joked that he is better suited to be a surgeon. Yet with a PhD in economics from Renmin University of China in Beijing and his history in China’s mainland financial capital Shanghai, Wu has been a big proponent of financial opening up and digitalization.
5. How has the market reacted to Vu so far?
The new appointment led to a small rise in China shares. The onshore benchmark CSI 300 index rose 0.7% in early trading Thursday before paring gains. Previous appointments of CSRC chiefs in China have proven successful in boosting stocks, with the CSI 300 gaining more than 40% in a nearly two-year period after Liu Xiu replaced Xiao Gang in 2016.
6. What else is Xi doing to reverse China’s defeat?
Xi’s government has introduced a number of measures to boost markets. Authorities recently imposed limits on cross-border total return swaps with clients of some brokerage firms, limiting the channel that can be used by China-based investors to short Hong Kong stocks .
A government rescue package of about 2 trillion yuan ($280 billion), supported by the People’s Bank of China’s sudden bank reserve ratio cut and efforts to guide institutional investors and funds to increase A-share holdings, is also under consideration. Whether any of these will be enough remains to be seen.

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