Major revamp looms at CSRC, stock exchanges

PUBLISHED : Monday, 25 February, 2008, 12:00am
UPDATED : Monday, 25 February, 2008, 12:00am

Regulator to get new vice-chairman

The China Securities Regulatory Commission and the Shanghai and Shenzhen bourses will undergo a management reshuffle soon that would see CSRC assistant chairman Yao Gang promoted as vice-chairman, sources said.

Mr Yao, who is responsible for the regulator's Public Offerings Supervision Department, would fill the post left by Tu Guangshao, who was appointed as Shanghai's vice-mayor in December last year, the source said..

His promotion would spark changes at the Shanghai Stock Exchange and Shenzhen Stock Exchange, amid a series of high-level personnel changes before the National People's Congress next month, the source said.

Zhu Congjiu, president of the Shanghai exchange, would be appointed as the securities watchdog's assistant chairman, replacing Mr Yao. Zhang Yujun, president of the Shenzhen bourse, is tipped to take over the post of Mr Zhu in Shanghai.

The reshuffle would be announced soon, sources said, adding it just needed time to go through the necessary procedures.

Market watchers said the management reshuffle at the securities watchdog would help speed up reform of the mainland securities industry as they are young and energetic and have extensive market experience.

Born in 1962 in central Shanxi province, Mr Yao obtained his Master of Arts in sociology from the University of Tokyo in 1989 and received a doctorate in economics from Wuhan University in 1999.

Before returning to China, Mr Yao worked as investment banker in several international brokerages in Tokyo, including Sanyo Securities, CLSA and Societe Generale.

He joined CSRC as deputy director-general of the Futures Supervision Department in 1993 and was one of those who set up the department. In 1997, he was promoted to director-general of the department.

Between 1999 and 2002, Mr Yao was president of Guotai Junan Securities, then the biggest brokerage on the mainland after Shanghai-based Guotai merged with Shenzhen's Junan.

In 2002, he returned to CSRC as director-general of the Public Offerings Supervision Department. During that time, the department introduced new measures including the establishment of the public offering review committee to review applications for share sales and the sponsorship system for new listings.

In July 2004, Mr Yao was named assistant chairman of CSRC.

Mr Zhu, 43, began to oversee the Shanghai exchange in September 2000, a year after he was named executive vice-general manager of the bourse in charge of daily operations.

The CSRC system has five vice-chairmen and three assistant chairmen. Sources said earlier that vice-chairman Fan Fuchun may step down and assume the top job at the Shanghai Futures Exchange as he has reached the mandatory retirement age for vice-ministerial positions.