Young regulator to run Shanghai stock exchange
The mainland has appointed Zhu Chongjiu to the key post of chief of the Shanghai stock exchange.
Mr Zhu, 35, who succeeds Tu Guangshao, takes up the reins as the mainland prepares to expand the Shanghai exchange through a merger with the Shenzhen bourse.
The mainland will base the combined exchanges in Shanghai in a bid to improve efficiency and simplify regulatory administration.
Shenzhen will eventually become the home of a second board for high-technology stocks.
The news was unveiled briefly in major mainland newspapers yesterday.
Mr Zhu has been groomed for the top job since he was named executive vice-president of the Shanghai exchange more than a year ago.
Previously he was an inspector for the China Securities Regulatory Commission (CSRC), the stock market watchdog, at the Shenzhen Stock Exchange, working in the office of regulatory supervision to ensure compliance.
Mr Tu moves to Beijing, where he will serve as secretary-general of the CSRC, securities officials have said.
Despite his youth, the new general manager of the Shanghai Stock Exchange was described by securities industry officials as an experienced regulator.
'He is an experienced regulatory official, having been with the CSRC since its establishment in 1992,' said Anthony Neoh, chief adviser to the government body.
'He has been governing mainland stock exchanges for some time and so has good knowledge of their operation. There aren't many people on the mainland that are so familiar with the exchanges.'
Other securities sources described Mr Zhu as steady and reliable, with a strong background in international regulatory procedures. Beijing is keen to boost its supervision of the market, and bring it more in line with international practice.
If Shanghai and Shenzhen were combined now they would have more than 1,000 listed companies and market capitalisation of 4.1 trillion yuan (about HK$3.9 trillion). Most listed companies, however, are controlled by the state through non-traded stock, and the combined market capitalisation of traded stock would be about 1.3 trillion yuan.
Mr Neoh did not say when the planned stock-market merger would take place, but the overhaul would start with the launch of the second board around November of this year.
It was announced last week that the Shenzhen stock exchange would cease to accept new listings of A shares for domestic investors. A-share issues by existing B-share companies are not bound by the rules, however.
Mr Zhu was reported to have worked for a short time on Wall Street and was secretary to former CSRC chairman Liu Hongru.
