Hong Kong SCMP report, market reassurance amid yuan declining
▲ Pan Gongsheng, party secretary of the People’s Bank of China. (Reuters Yonhap News)
It has been predicted that Pan Gongsheng, vice president of the People’s Bank of China, who is the secretary of the Communist Party Committee, will be appointed as the next PBOC governor.
According to Yonhap News on the 2nd, the Hong Kong South China Morning Post (SCMP), in light of the precedent of taking a position in a government department first before ascending to a key position in the government department, said Pan Clerk, who was appointed as the new party secretary of the People’s Bank the previous day, will succeed Lee Kang, the current head of the People’s Bank of China. It was reported that he would be the chief.
Lee Kang-hyun, 65, who is considered to be of implicit retirement age for a ministerial position, was not listed on the list of party central members at the National Congress of the Communist Party (party congress) last October, and it was thought that his resignation was imminent.
In March, at the Two Sessions (National People’s Congress and National People’s Political Consultative Conference), he was unexpectedly retained as the head of the People’s Bank of China. there is.
According to Chinese media Caixin, if Pan Gong-seong takes over as the People’s Bank’s party secretary and then the president, the history of the People’s Bank’s president not concurrently serving as party secretary will come to an end in five years since 2018.
New secretary Pan, who obtained a doctorate in economics from Renmin University of China, worked at the Industrial and Commercial Bank of China and the Agricultural Bank of China.
Chaisin’s analysis is that the rise of Secretary Pan, who has experience in major state-owned banks and the People’s Bank of China, as well as studying abroad as a postdoctoral visiting scholar at Cambridge University in England from 1997 to 1998, is a stepping stone to reassure the market.
In particular, if Secretary Pan, who has experience as a secretary of the Foreign Exchange Control Bureau, is appointed as the helmsman of the central bank amid the declining yuan exchange rate coincided with the slowdown in China’s economic recovery, it is expected that it will send a signal to the international financial market as well.
Previously, at the Monetary Policy Committee meeting held on the 28th of last month, the People’s Bank of China said, “We will implement a moderate monetary policy accurately and vigorously.” We need to promote a virtuous cycle of the economy and provide stronger support to the real economy.”