China Construction Bank Corp Chairman Guo Shuqing and Agricultural Bank of China Ltd’s Chairman Xiang Junbo and resigned amid speculation that the government plans to appoint new financial regulators, Bloomberg reported.
Both chairmans resigned to do state financial work, the two government-owned banks said. According to media reports, Guo will be appointed the head of the China Securities Regulatory Commission and Xiang will be appointed Chairman of the China Insurance Regulatory Commission.
Naming new personnel at the regulators will be part of the broader leadership changes expected in China over the next 11/2 years as the ruling communist party chooses officials to replace President Hu Jintao and Premier Wen Jiabao, the reports said.
The older leaders will quit from positions in local governments, the military and cabinet ministries. “This isn’t the first time for this kind of management reshuffle in China’s bureaucracy,” Ronald Wan, a Managing Director at China Merchants Securities (Hong Kong) Co. “From past experience, we know that these finance company heads can actually pick up their new jobs quite fast,” Wan added.
The Chairman of the China Banking Regulatory Commission Liu Mingkang will be replaced by Shang Fulin of China Securities Regulatory Commission. Meanwhile, Jiang Jianqing, Chairman of Industrial & Commercial Bank of China is also a contender to head the banking regulator.
China Construction Bank is the big four banks in the People’s Republic of China and it is ranked as the nations second largest and the second largest bank in the world by market capitalization.
Agricultural Bank of China Ltd is headquartered in Beijing. It has branches in mainlandChina, Hong Kong, London, Tokyo, New York, Frank furt, Sydney and Singapore.