China Ropes-in Pan Gongsheng as New Central Bank Governor

Pan Gongsheng, known as a firefighting technocrat, has been appointed as the People's Bank of China's (PBOC) new governor, following his elevation to the central bank's top political post earlier this month.

Sources confirmed Pan, who led China's top foreign exchange regulator from 2016 to this week, as the replacement for respected governor Yi Gang, making him the first person to hold both positions since Yi's predecessor Zhou Xiaochun.

Pan is well-known for his tough stance against currency speculators, as well as his involvement in state banking reforms, tightening property market and fintech regulations, and the prohibition of cryptocurrencies.

He takes on the task of dealing with a downturn in the property sector, which accounts for roughly a quarter of China's economic activity, as well as a mountain of local government debt, both of which pose significant challenges to the banking sector and the broader economy.

During her visit to Beijing this month, US Treasury Secretary Janet Yellen met Pan, referring to him as the head of the PBOC.

While Pan will serve as both the Communist Party's head at the PBOC and the central bank's governor, the central bank now reports to new regulators as China tightens party control over the financial system this year, including plans for a Central Financial Commission to oversee the PBOC and other institutions.

The new structure dampens expectations Pan might champion pro-market reforms as his two predecessors did.

China removed Yi Gang from the central bank governor post, state media said.