China stock market

Shanghai Stock Exchange chairman Wu Qing tipped to become vice-mayor of the city

The veteran securities official is known for his no-nonsense approach on market irregularities

PUBLISHED : Wednesday, 03 January, 2018, 4:13pm
UPDATED : Wednesday, 03 January, 2018, 10:56pm

Wu Qing, chairman of the Shanghai Stock Exchange, is set to be become a vice-mayor of China’s financial capital after securing membership of the municipal government’s Communist Party committee.

Wu will be elected as vice-mayor during the annual session of the Shanghai People’s Congress that starts on January 23, said two local government sources.

An official statement from the Shanghai government saying that Wu, 53, took part in a government conference chaired by Shanghai Mayor Ying Yong on Tuesday, is further indication that the promotion is set to take effect.

Besides, only the mayor, vice-mayors and general secretary of the Shanghai government are members of the Communist Party committee.

It is not known what role Wu will play in the Shanghai government.

The Shanghai Stock Exchange would not comment on the personnel arrangement involving its chairman.

Wu, carrying a vice-minister rank now, will become the third senior securities regulator to be transferred to a provincial-level regional government.

Shanghai Stock Exchange to be headed by veteran securities regulator Wu Qing

Tu Guangshao, a former vice-chairman of the China Securities Regulatory Commission (CSRC), was in charge of Shanghai’s financial industry between late 2007 and mid-2016 when he was a vice-mayor of the city. Tu is now the president of China Investment Corp, the country’s sovereign wealth fund.

Zhu Congjiu, also a former vice-chairman of the CSRC, moved sideways to become a deputy governor of Zhejiang province in 2012, to help him garner regional experience.

It is worth noting that Tu and Zhu were also former chairmen of Shanghai Stock Exchange.

“Securities officials are believed to have valuable experience needed by local governments to reform the state-owned businesses and financial system,” said Wang Feng, chairman of financial services firm Ye Lang Capital. “Personnel arrangements like this are likely to become a norm in the future.”

Last week, Yan Qingmin, a vice-mayor of Tianjin, was appointed as vice-chairman of CSRC.

As a veteran securities regulator, Wu is seen as a young political star and known for his harsh stance on market irregularities.

In 2009, as the chief of the CSRC’s department of fund supervision, Wu led a nationwide clean-up effort to investigate suspicious trades by mutual funds, in which officials of fund companies were exposed and punished.

He was then transferred to Shanghai’s Hongkou district to take the positions of district governor and Party Secretary between 2010 and 2016, an apparent move to groom him for a future political career.

In May 2016, he was nominated chairman of the Shanghai exchange.

He is credited with a strong and efficient oversight of the market during his tenure at the Shanghai bourse.