China’s He Lifeng appointed to a significant role in the Central Financial Commission
He Lifeng, a Chinese vice premier, has been appointed as the head of the office of the Central Financial Commission (CFC), responsible for managing the day-to-day operations of a new regulator tasked with overseeing China's extensive financial sector.
Additionally, he was named the party chief of a separate entity, the Central Financial Work Commission (CFWC), which aims to enhance the party's ideological and political influence in China's overall financial system, according to a report from Reuters.
These appointments, as reported by the central bank's Financial News publication, highlight the direct control exerted by the ruling Communist Party over financial sector supervision. He's responsibilities will include addressing issues related to local government debt and the property sector downturn, both of which pose threats to financial stability and China's long-term economic growth.
China had previously announced in March the establishment of the CFC as part of a broader restructuring of both party and government entities, with the aim of strengthening the party's oversight of the industry. The head of the CFC has yet to be named.
He Lifeng, who is considered a close associate of President Xi Jinping, has been actively involved in handling financial, economic, and trade matters since his appointment as vice premier during a cabinet reshuffle in March. He has also assumed the position of director of a critical Communist Party economic body, the Central Finance and Economic Affairs Commission, succeeding Liu He.
Recent reports from state media indicate that the Communist Party is intensifying its leadership role in the financial industry and increasing efforts to mitigate local government debt risks. The announcement was made after a twice-a-decade financial policy meeting held on October 30-31.
The CFWC aims to "comprehensively strengthen the party's leadership over financial work" and enhance financial supervision, according to a summary of a CFWC meeting held the previous week.
He Lifeng's background includes a doctorate in economics, and his relationship with President Xi dates back four decades. He has played various roles in the Chinese government, and his appointment as the head of the CFC and CFWC reinforces the centralization of control within the Communist Party over China's financial sector.
