Nikkei Asian Review/C. K. Tan: China promotes deputy Yi Gang as new central bank governor

Nikkei Asian Review

   
    SpotlightChina People's Congress 2018

    Facebook Twitter LinkedIn Google+ Mail Save

March 19, 2018 1:33 pm JST
China promotes deputy Yi Gang as new central bank governor

Liu He named vice premier, bolstering leading role on financial issues

CK TAN, Nikkei staff writer

Yi Gang, a former academic, will be China's new central banker. © Getty Images

BEIJING -- Yi Gang, a former academic, has taken the reins of China's central bank, following in the footsteps of respected reformer Zhou Xiaochuan.

Meanwhile, Liu He, who has emerged as President Xi Jinping's top economic adviser, was named as one of four vice premiers for Xi's second term. The appointment of Liu, who some saw as a leading candidate to succeed Zhou as governor of the People's Bank of China, underlines the leading role he now has on financial issues at a time the government is focusing on restraining the growth of debt and curtailing financial risk.

Fraser Howie, a Singapore-based analyst tracking Chinese financial markets, called Yi a "safe pair of hands, who knows the PBOC inside out but will not have the impact that Zhou did."

"Zhou built the PBOC and his role over a period of significant change in China," Howie said. "That gave him leeway and influence. Yi Gang has now taken over a mature role, but one very much at the call of Liu He and Xi Jinping."

Han Zheng, a member of the Communist Party Politburo, was also named vice premier. A former mayor of Shanghai, Han has deep experience running state-owned industrial companies. He is expected to work closely with Liu to execute economic reforms, especially moves to address the huge debts of state companies.

The National People's Congress overwhelmingly approved Yi's appointment as the new PBOC governor. He has been deputy governor since December 2007. Some 2,965 legislators backed Yi, with just two voting against him and two abstaining.

Liu He, who has emerged as President Xi Jinping's top economic adviser, was named as one of four vice premiers. © Reuters

Under a new reorganization of government functions, the PBOC will take over some roles now handled by China's banking and insurance regulators, which are to merge. In particular, the PBOC will now be responsible for drafting new laws and regulations for the two financial sectors and will also take on more responsibility for monitoring key financial institutions.

In his 15 years as governor, Zhou is credited with persistently pushing ahead with gradual financial reforms, including the liberalization of bank lending and deposit rates and the yuan's exchange rate. Analysts and economists have been speculating intensely in recent months as to who would be named to succeed him, with attention focused on a handful of candidates. Few identified Yi as a front-runner.

After studying at Peking University and then earning a doctorate in economics from the University of Illinois in the U.S., Yi went on to teach at Peking University and Indiana University. He joined the PBOC's monetary policy committee at the height of the Asian financial crisis in 1997.

Bai Hexiang, head of the PBOC's Xi'an branch, called Yi "easy going." He added, "Compared to officials who do not have an overseas background in the PBOC, Yi has better knowledge of international monetary policy."

    1
    2
    Next >

Last >>

    Facebook Twitter LinkedIn Google+ Mail Save

Related stories

    More controls on financial risk needed, says China's Zhou
    China opens the door for Xi to be president for life
    William Pesek: New Chinese central bank governor must navigate Xi's wishes

Get Insights on Asia In Your Inbox
Register
About newsletters
More in China People's Congress 2018

    What to expect from China's top-level political meetings
    China promotes deputy Yi Gang as new central bank governor
    China promoting foreign minister as state councillor


You might also like

    UN official fears for safety after Manila lists her as terrorist UN official fears for safety after Manila lists her as terrorist
    Abe refutes charges -- 'I had no way to direct falsification' Abe refutes charges -- 'I had no way to direct falsification'
    China up close: Xi Jinping and the 60-year curse China up close: Xi Jinping and the 60-year curse
    Deadly volcano eruption in Japan confounds forecasters Deadly volcano eruption in Japan confounds forecasters
    China puts US Navy on notice with far-flung ports and big guns China puts US Navy on notice with far-flung ports and big guns
    US takes aim at China with tariffs on up to $60bn in imports US takes aim at China with tariffs on up to $60bn in imports

Recommended by
Follow Nikkei Asian Review

    The best content posted
    The latest headlines tweeted

Editor's picks

    China promotes deputy Yi Gang as new central bank governor

    Big-spending Indian couples woo world's largest wedding portal

    News of Apple display sends Asian supplier shares down

    Alibaba to invest additional $2bn in Lazada

    William Pesek: New Chinese central bank governor must navigate Xi's wishes

Print Edition

    Cover story: Esports: Why pro video gaming will be bigger than the NFL
    Life after esports: What happens when pro gamers hang up the joystick?

See all issues
Most read

    Don't use foreign trainees to fix labor shortage: Japan's new law
    Japan's import prices for daily goods sink further
    Xi-Wang axis to challenge US for economic supremacy
    China up close: Xi Jinping and the 60-year curse
    Global trade surpasses economic growth for first time in 6 years

Videos

    The art of making G-Shock watches

    LVMH creates a new wine legacy in the Himalayas

    Fukushima cleanup at seven years

more
Financial Times

    Mar.19 18:31 StanChart hit with $4m fine for Singapore money laundering breach
    Mar.19 14:00 Seoul warns of US steel tariff impact on nuclear talks
    Mar.19 13:32 China’s Liu He to take broad economic role as vice-premier
    Mar.19 10:30 China nominates Yi Gang as central bank governor
    Mar.19 10:20 China names Yi Gang as new central bank governor

Nikkei Asian Review

    Facebook Twitter LinkedIn Google+ YouTube RSS

    App store google play

    About Nikkei Asian Review Site map Help Contact us Terms of use Copyright Privacy & cookie policy Advertising Announcements

Nikkei Inc. No reproduction without permission.

    Japanese Chinese

    Mobile site