Beijing He replaced the head of the China Securities Regulatory Commission on Wednesday in an apparent effort to restore confidence in the stock market.
The official Xinhua News Agency reported that Wu Qinga banking veteran and former vice governor of the financial center of Shanghai, will replace Yi Huiman.
Chinese stocks plunged on Monday, hitting a five-year low, despite regulators’ promise to crack down on share price manipulation andmalicious” short selling.
Markets in Shanghai and its junior partner in Shenzhen, near Hong Kong, have been languishing by sell-offs in property stocks, which are going through a period of uncertainty, with the real estate market slumping.
Top Chinese stocks fell 11.4% last year, while Hong Kong’s index sank about 14%. The damage to the economy prompted thousands of people to express their frustration on the US embassy’s social media site.
The major real estate and construction players that fueled China’s dynamic growth in recent decades have racked up huge debts, making it impossible for them to deliver apartments to buyers who have already paid for them with their life savings, as well as pay off their debts with bankers and investors.
The home ownership rate in China is almost 90%, much higher than in many Western countries.
Home ownership in China It grew a lot in recent decades thanks to a broad reform that gave workers ownership of the houses assigned to them by companies and state agencies.
Source: Gestion
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