Shanghai vice-mayor set for China Investment Corp

Beijing is expected to announce appointments to key financial positions in the near future as the new leadership prepares to take bolder steps towards financial reforms.

Tu Guangshao, executive vice-mayor of Shanghai, will be named chairman of the mainland's US$500 billion sovereign wealth fund, China Investment Corp, more than two months after Lou Jiwei left the post to become finance minister, sources said.

CIC was not available for comment yesterday. The Shanghai municipal government would not comment on the personnel change.

The reshuffle comes after a slew of personnel changes in the mainland's securities' regulator and policy and commercial banks this year, as the new leadership, led by Xi Jinping, consolidates power to pave way for deepened reforms in the financial sector.

CIC has been under the spotlight since an injection in 2007 of US$200 billion from the mainland's foreign reserves, over unsuccessful investments and the blocking of some of its attempts to acquire foreign assets. The appointment of Tu will come at a time when the sovereign fund is awaiting capital injections to boost investment, and the clarification of the question of whether China will get a second sovereign fund.

Tu, 54, has been in charge of finance, taxation and external affairs in Shanghai, the city the mainland leadership aims to turn into a world financial centre, since 2007. Before that he worked at the People's Bank of China, the Shanghai Stock Exchange, and the China Securities Regulatory Commission.