According to Xinhua, Chinese authorities recently replaced the head of its securities watchdog with veteran regulator Wu Qing, known as the "Broker Butcher," amid the continued decline of the country's stock market. Currently, Wu Qin, previously the acting vice mayor of China's major financial hub Shanghai, also known as the "Broker Butcher," has been appointed as the new chairman of the China Securities Regulatory Commission (CSRC) and party chief of the financial regulator. He earned the nickname in the mid-2000s for his tough management style as head of the CSRC. A few years ago, the "Broker Butcher" shut down 31 firms for violating trading rules. In 2010, Wu Qing took over the Shanghai Stock Exchange, and two years later he became the vice mayor of Shanghai, holding the position for nearly 12 years. The possibility of Wu Qing's return to this position was previously reported by Bloomberg. Now his appointment comes at a time of unprecedented plunge in Chinese corporate stocks. Meanwhile, the Chinese authorities have used all possible means of intervention, and nothing seems to help the country's stock market. At the same time, the government of Xi Jinping has launched significant support measures, but the stock market has not been able to return to growth. The authorities' fight against dishonest traders and investors is one way to "revive" the Chinese stock market. Beijing introduced these measures to stem the continuous outflow of capital from the country. Doubts among investors about the prospects of the Chinese economy add pressure on the market. Many do not believe that Xi Jinping's government will be able to control the situation. Earlier, QUICK analysts concluded that since the beginning of 2024, investors have withdrawn $1.7 trillion from Chinese stock exchanges. They found that the bulk of the money was moving from China to the US. According to QUICK estimates, capital inflows into the US reached $1.4 trillion during the reporting period. This has boosted confidence in the already strong US stock market, whose major indices are at record levels.
