Chinese central banker’s proteges are positioned to carry on his reformist baton

As the retirement of People’s Bank of China Governor Zhou Xiaochuan approaches, his legacy of financial reform may yet live on through the advancing careers of people he’s helped guide to prominence.

The latest examples of that phenomenon are five officials, associated with Zhou and seen as like-minded reformers, who were promoted since 2015 to key posts at the central bank, market regulators and even the International Monetary Fund. They include Zhang Xin, deputy head of the State Administration of Foreign Exchange and Li Bo, director general of the PBOC’s monetary policy department.

Their ascent should offer some reassurance amidst the uncertainty surrounding who’ll succeed the Group of 20’s longest-serving central bank governor. With proteges in key roles, Zhou can expect them to carry on his push for financial liberalisation and a freer yuan, while avoiding the pitfalls of a debt pile that’s swelled massively under his watch.

“These appointments at least partially reflect Zhou’s intention to ensure his legacy of liberal reform be maintained after he steps down,” said Feng Hui, co-author of ‘The Rise of the People’s Bank of China.’ “All the appointments help bring international visions to mid-level management.”

Since taking the central bank’s reins in December 2002 -- back when Alan Greenspan was leading the US Federal Reserve -- Zhou has steered the nation through global crises, overhauled monetary policy tools, ended a direct peg to the dollar, abolished a cap on deposit rates and overseen the elevation of the yuan to reserve-currency status.

While it’s widely expected he will retire in the not too distant future, there are no guarantees as China’s political appointments are often unpredictable.