Mr Shang, seen as a moderate conservative, had been criticised by brokers and fund managers for failing to rebuild public confidence in the A-share markets.

'What has he done in the last two years?' asked one Shanghai-based fund manager. 'He lost credibility a long time ago.'

In February, the central government proposed nine measures to boost stock-market development, including ensuring returns to investors and resolving the issue of state shares, but none had been properly implemented.

Mr Shang is expected to be replaced by Huang Qifan, a former top economic policymaker in Shanghai and the deputy mayor of Chongqing.

Sources in Shanghai said Mr Huang's imminent appointment was a boost for the markets as 'he plays the markets himself'.

The Shanghai A-Share Index jumped 4.2 per cent yesterday while its Shenzhen counterpart rose 4.6 per cent, capping two consecutive days of gains after hitting multi-year lows on Monday.

Although the securities industry cheered Mr Shang's expected departure, sources said he was a poor choice for the CBRC's top job, despite previous stints at the People's Bank of China and the Agricultural Bank of China.

He was more familiar with monetary policies and did not have substantial experience regulating banks during his central bank tenure.

Reviews for Mr Liu were less harsh.

A western banking analyst lauded Mr Liu's strengthening of the regulatory regime, particularly risk management and capital adequacy requirements, in a country where banks have been desperately racing to expand operations.

'It's remarkable what he has done at the CBRC and it's been much tougher than I had expected,' the analyst said.

But appraisals from the industry were mixed.

'Mr Liu has done a great deal in introducing advanced western regulatory practices,' said a former banker. 'However, he sometimes showed a lack of understanding of the domestic industry.'

Another source said Mr Liu's imminent transfer to Fujian reflected central government concerns that the speed of financial and banking reforms was too slow.

Mr Liu was deputy governor of Fujian from 1993 to 1994.

Old Dogs, New tricks

Liu Mingkang

58, born in Shanghai

China Banking Regulatory Commission chairman since April 2003

Bank of China chairman and president from February 2000 to March 2003

Everbright Group chairman from July 1999 to February 2000

Huang Qifan

52, native of Zhejiang province

Deputy mayor of Chongqing since October 2001

Director of Shanghai Economic Commission from May 1998 to October 2001

Previously deputy director of Pudong New District Management Commission

Shang Fulin

52, native of Shandong province

China Securities Regulatory Commission chairman since December 2002

Agricultural Bank of China president from February 2000 to December 2002

Former deputy governor of the People's Bank of China