Pan Gongsheng Named China’s Central Bank Governor

Pan Gongsheng has been formally named as the China’s new central bank governor. The much-anticipated announcement came on Tuesday, marking a significant shift in power within the ruling Communist Party, which occurs once every decade.

Pan Gongsheng, a seasoned veteran of China’s state-owned banking sector and the deputy central bank governor, takes over the prominent role from his predecessor, Yi Gang, an American-trained economist who served in the position for five years.

The National People’s Congress, China’s ceremonial legislature, endorsed Pan’s promotion, following the earlier announcement of other Cabinet-level appointments in March.

As the governor of the People’s Bank of China, Pan becomes the most prominent figure in the country’s financial circles. However, it is important to note that the post’s powers are confined as the bank remains under the control of the ruling Communist Party.

The promotion of Pan Gongsheng was widely anticipated, especially after his meeting with the U.S. Treasury Secretary, Janet Yellen, on July 8. The meeting served as an indicator of his potential elevation to the top position. Prior to this appointment, Pan had been assigned the role of Communist Party secretary for the central bank, further cementing his position as the likely successor.

Pan Gongsheng’s journey to this prestigious role has been marked by a series of key positions in the financial domain. In 2015, he was appointed as the head of China’s foreign exchange regulator, a role often considered a stepping stone towards the governorship of the central bank. Before that, he served as a vice president at the Agricultural Bank of China Ltd., one of the country’s four major commercial lenders.

The new central bank governor holds an impressive academic background. He earned a Ph.D. in economics from Renmin University in Beijing and conducted research at esteemed institutions such as Cambridge and Harvard Universities.