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A respected financial industry veteran with a doctorate from Stanford University is set to serve as vice-chairman of China’s securities regulator, as the agency seeks to repair damage inflicted to its reputation by its handling of stock market volatility this summer, local media reported on Wednesday.
Fang Xinghai, who currently serves on a financial and economic policymaking group under Premier Li Keqiang, will take over as deputy chairman of the China Securities Regulatory Commission, Caixin reported.
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The CSRC was widely chastised for its handling of the stock market turmoil in recent months. The Shanghai Composite index rose by 150 per cent in the year to June 9, then plunged 44 per cent in the next two and a half months. It has since recovered slightly.
The agency, where working hours are long and salaries low, has struggled to attract and retain talent. Analysts say the CSRC and its chairman Xiao Gang failed to contain the risks from an increase in leverage that accompanied the rally through margin lending, including lightly regulated grey-market margin lending.