China Central Bank chief likely to resign amid reshuffle

It is likely that the head of banco central chinoYi Gang resigns after being expelled from an elite body of the ruling communist partywhile a former central banker is one of the main contenders to succeed him, according to sources close to the entity.

The possible retirement in early 2023 of Yi, 64, has been the subject of intense speculation as he approaches the official retirement age of 65 for ministerial-level officials. Some political experts and advisers had suggested that Yi’s term could be extended, as was the case with his predecessor, Zhou Xiaochuan.

Yi is one of the reformist politicians who were not appointed on Saturday as full or deputy members of the party’s new Central Committee. Also excluded were outgoing Premier Li Keqiang, 67, economics czar Liu He, 70, and central bank party chief Guo Shuqing, 66.

The changes at the end of the party congress, held twice a decadewere some of the moves that cemented Xi Jinping’s iron grip on power.

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Yi’s departure seems inevitable,” said one Chinese political insider. “The reformist camp is almost out at the party congress.”

Yi was a substitute in the previous Central Committee. Exclusion of him from the new Central Committee lists means he is almost certain to resign at the parliament’s annual meeting in March, the sources said.

The People’s Bank of China did not immediately respond to a request for comment.

The imminent remodeling occurs at a time when the entity tries to strengthen the economy, devastated by covid-19while avoiding aggressive easing that could fuel capital flight, as the Federal Reserve and other central banks raise interest rates to fight rising inflation.

Yin Yong, deputy party chief in the capital Beijing, who served as deputy central bank governor from 2016 to 2018, is one of the leading candidates to replace Yi, sources close to the central bank said.

Yin, 53, who has a doctorate in engineering from Tsinghua University and a master’s degree in public administration from Harvard University, was elected as a full member of the Central Committee during the party congress.

“Yin Yong is likely to replace Yi Gang,” said a source close to the central bank who spoke on condition of anonymity.

Other sources described Yin as well positioned to replace Yi, given his status as a rising star and his previous experience at the central bank, foreign exchange regulator and government in Beijing.

China is facing the biggest overhaul of its economic leadership in a decade, with a generation of reform-minded politicians expected to resign amid worsening growth prospects.