Source says Beijing is looking for “highly trusted and resourceful figure” to take the lead on reforms – and Liu stands out
President Xi Jinping’s bold plan to transform China’s increasingly complex financial agencies has made his trusted aide Liu He the most likely candidate to head the central bank, according to sources close to the People’s Bank of China.
The Harvard-educated technocrat – and President Xi Jinping’s right-hand man on economic policy – is highly likely to succeed 70-year-old Zhou Xiaochuan as head of the central bank after China’s annual legislative session is held next month, people with knowledge of the situation said.
At the same time, Liu, 66, is also widely expected to become vice-premier in charge of economic and financial affairs in March. That would put him on a par with Zhu Rongji, known for his tough approach to tackling the economic chaos when he was vice-premier and central bank governor from 1993 to 1995.
“Liu He stands out from the other candidates because the top leadership has decided that only a highly trusted and resourceful figure can take the lead on increasingly complicated reforms,” one of the sources said.
Liu also stands out because China is considering a major restructure of its top government agencies. One of the proposals on the table is to elevate and expand the functions of the central bank, according to sources.
There has been speculation that the central bank could take up some of the responsibilities of the top economic policymaking agency, the National Development and Reform Commission, and the Ministry of Finance.
On Saturday, Xinhua reported that the elite Central Committee would discuss a plan to restructure party and government agencies at a plenary session early next week.
The restructuring and the appointment of a new central bank governor will be key to China’s efforts to tackle financial risks, which is now a top government priority.
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Changes at the top during a broader reshuffle can be subject to last-minute changes in China, and many other names have been reported as front runners to replace Zhou when he retires after a decade and a half in the job.
They include Guo Shuqing, chairman of the China Banking Regulatory Commission, Jiang Chaoliang, Hubei party secretary, Yi Gang, deputy governor at the central bank, and Liu Shiyu, chairman of the China Securities Regulatory Commission.
“It’s not final, but currently Liu is ahead of the other candidates,” a second source said.
