Investors in Chinese stocks are hoping the new chief of the country's securities regulator will preside over a rebound in the stock market.
Liu Shiyu, formerly the chairman of Agricultural Bank of China, took over as head of the China Securities Regulatory Commission (CSRC) at the weekend. He replaces Xiao Gang, formerly head of Bank of China, who had been chairman of the CSRC since March 2013.
During Xiao's tenure, the Chinese stock market boomed only to plunge in the summer of 2015. The fall in value was so alarming the CSRC activated "circuit breakers" in January 2016 that suspended trading when stock prices rose or fell sharply.
The CSRC scrapped the circuit breakers after only four days of operation, a decision that highlighted flaws in the mechanism, according to ratings agency Moody's.
Some see the removal of Xiao as an attempt to place blame for the market volatility, and the flawed circuit breakers, on his shoulders. However, his successor faces many of the same challenges that frustrated Xiao's attempts to maintain order in China's capital markets.
Among the issues Liu must oversee is whether state-owned companies that agreed not to sell shares while stock prices were collapsing should now be allowed to sell. He must also deal with allegations of insider trading.
Liu spent 18 years working at China's central bank, ultimately as deputy governor. He became the head of Agricultural Bank of China, one of the country's "big four" state-owned banks, in October 2014.
©2016 funds global asia
At times like these, HSBC Asset Management easily pivots towards emerging markets.
A comprehensive, cost-effective, and transparent currency overlay hedging solution is crucial to mitigate FX exposure risks in the complex landscapes of Japan and China's FX markets, explains Hans Jacob Feder, PhD, global head of FX services at MUFG Investor Services.
The world is transitioning from an era of commodity abundance to one of undersupply. Ben Ross and Tyler Rosenlicht of Cohen & Steers believe this shift may result in significant returns for commodities and resource producers over the next decade.
Ross Dilkes, fixed income portfolio manager at Wellington Management, examines the opportunities and risks for bond investors presented by the region’s decarbonisation agenda.
Shareholders in Japan no longer accept below-par corporate governance standards. Changes are taking place, but there are still areas for improvement, says Tetsuro Takase at SuMi Trust.
Robert St Clair, head of investment strategy at Fullerton Fund Management, explores the reasons investors should be paying attention to the rising demand for healthcare in China.
