China’s new securities chief Liu Shiyu is a natural choice for the job, say analysts

The appointment of Liu Shiyu as the new head of the mainland’s securities regulator, after months of turmoil in the nation’s stock markets, came as a surprise to many, but the chairman of the Agricultural Bank of China is a natural choice for the role, according to analysts.

The China Securities Regulatory Commission has had seven chairman before Liu and six had previously worked in state banks.

Shang Fulin, the longest serving chairman in the regulator’s history, was also the head of the Agricultural Bank of China before he took on the role.

Liu’s experience as a former vice governor at the central bank also stood him in good stead.

Hi predecessor at the securities regulator, Xiao Gang, had also worked as a vice governor at the People’s Bank of China, as had the head of the agency before him, Guo Shuqing.

“Liu has experiences in overseeing financial institutions, dealing with financial risk and regulating internet finance – all vital skills for his new position as the CSRC’s chairman,” said Zuo Xiaolei, an researcher at the Counsellors’ Office of the State Council.