China appoints “broker butcher” Wu Qing as new head of the Securities Regulatory Commission

His predecessor Yi took up the mantle of the CRSC in 2019, tasked with implementing a series of sweeping capital markets reforms.

Wu's appointment comes in the footsteps of the Chinese Securities and Exchange Regulatory Commission, which over the past two weeks announced new supportive policies to stabilize and revitalize the stricken Chinese stock market, which has become a victim of fluctuations in the real estate sector and widespread investor pessimism about the outlook for the second economy in the world. largest economy.

The actions came as the Securities and Exchange Commission earlier this week pledged a new “zero tolerance” policy against malicious short selling — betting on the price of a particular asset or asset falling — warning would-be criminals that they will “lose their shirts and rot.” in prison”. “,” According to Reuters.

“The SEC will crack down on the use of securities lending transactions to carry out improper arbitrage and other illegal activities in accordance with the law to ensure the smooth operation of securities lending business,” a Securities and Exchange Commission spokesperson said on February 6, according to a statement. Finance. Translated by Google statement.

Compounding the picture, China's CSI 300 index fell to its lowest level in five years on January 31, after manufacturing activity in the country contracted for the fourth month in a row. Citing undisclosed sources Bloomberg News reported Chinese President Xi Jinping will discuss the state of the stock market with financial regulators, after last month Giving a speech He praised the advantages of “high-quality financial development”, “combining the rule of law and the rule of virtue”, and the implementation of “financial culture with Chinese characteristics”.

In late January, Chinese Premier Li Qiang called for “More robust and effective measures to stabilize market stability and confidence,” according to a Google-translated statement, raising expectations that a hitherto reluctant Beijing will mobilize a massive stimulus package, amid growing concerns that deflation is hurting growth beyond China's economy. Had a slower than expected recovery after COVID-19.