The head of the China Securities regulator dismissed – RIA Novosti

© AP photo / Vincent Thian

BEIJING, February 20 – RIA Novosti, Zhanna Manukyan. The Central Committee of the Communist Party of China decided to replace the head of the regulator of the securities Xiao Gang on the background of instability in the stock market of the country, reports Xinhua news agency.

“Liu Shiyu was appointed head of the Committee for the management and control of securities China (China Securities Regulatory Commission, CSRC) instead of Xiao Gang, “- said the agency

Liu Shiyu started working in the banking industry in 1996.. Until October 2014, he held various positions in the People’s Bank of China (central bank), including the vice-president of the bank. In October 2014, Liu led the Agricultural Bank of China.

The change of leadership of the committee followed on the background of the strong volatility of the last time the stock market in China. The main index of the Shanghai Stock Exchange Shanghai Composite Index from June to early September dipped by 41%.

Rumors about the possible dismissal of Xiao Gang, who has held his post since March 2013, there were once at the beginning of January 2016 the committee decided to impose a “circuit breaker” trading, which is triggered by the sharp fluctuations in prices. After the introduction of the mechanism is activated twice and has led to a further collapse of the stock market. After that, the controller has recognized the negative effect of the automatic stop mechanism of trading and announced its revocation.