CSRC launches innovative officials rotation (re-write)

Recently, I read an article  from China Economics & Finance (Caixin Media), named as A New Spin on Regulation. It mainly talks about how the China Securities Regulatory Commission (CSRC) has begun rotating officials to break up vested interest groups and clear way for innovation.

Last October, Guo Shuqing became CSRC's Chairman, who has ever since advocated less administrative interference in the country's securities markets .

"A key element in Guo's package of proposed reforms would replace an approval-based stock issuance system with a registration-based mechanism," staff reporter Lu Yuan writes on the China Economics & Finance. "But vested interests stand in the way of his overhaul plan."

The method is to replace officials occupying powerful positions at centre stage with those from behind the scenes. This means the nine key deparments officials would be moved to secondary departments, meanwhile, the vacancies would be filled by officials from outside the key departments.

The rotation began in early March, additionally, personal wishes would be considered during transfers.

One example saw Li Liang, a Columbia master graduate who also holds a Ph.D from the China Academy of Social Sciences, become the party Committee of China within CSRC. "Li's move is only one of the many for the CSRC recently and is intended to dislodge senior officials from posts that are vulnerable to exploitation and corruption." Lu writes.

"This time, among all regulatory bodies, the CSRC has carried out probably the most thorough job rotations," one of CSRC's officials told Lu.

According to the publication, CSRC does rotate its officials. Throughout the years, the regulatory body managed several rounds of executive job rotations, though it was deemed a procedure which has not so far affected the protected interests of key departments until the recent changes. 

CSRC employs more than 3,000 people nationwide, with 800 residing in Beijing.