China’s Cabinet has just created a new department to coordinate financial and economic affairs as a goal of restoring investor confidence in the government’s regulation of markets. The move has not been publically announced yet, but was reported to Bloomberg Business by an insider. Agricultural Bank of China VP Li Zhenjiang was nominated as the deputy director who will be responsible for the daily operations and he has just taken the post.
The move shows an understanding by Communist Party leaders that the current structure needs to be redone as a reflection of China’s markets and their economic slowdown. The Shanghai Composite Index has decreased more than 17% since late December.
Learn more about these plans and pay attention to their implementation in the weeks ahead.