China on Friday named the former stock market regulator chief Guo Shuqing as the new head of the China Banking Regulatory Commission (CBRC). Guo's appointment is probably intended to send a clear signal to the market about the Chinese government seriousness to overhaul the country's financial system.   

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Guo is a seasoned economist whose last job as a governor of Shandong province was more political in nature. But his appointment as a new banking regulator chief will bring him to his traditional domain, where he would be expected to redeem China's highly debt-ridden banking sector.

Guo will succeed Shang Fulin, who resigned after reaching the mandatory retirement age of 65. The new CBRC chief declined to comment on his appointment.      

During his short 17 months tenure as a stock market regulator, Guo issued 80 major directives to bring sweeping changes across Chinese stock markets. This included tough directives aimed at stopping chronic insider trading, curbing market manipulation, and removing barriers for foreign investors. His knack for taking tough decisions at rapid pace earned him the nickname "Whirlwind Guo.'

Analysts say that Guo Shuqing's appointment is a clear signal that Chinese government has had enough of its debt-laden and murky banking system. There is an overwhelming consensus among analysts and economists that China's soaring debt is halting its long awaiting economic recovery.

Many blame the rising bad loans in China's banking space on state's overwhelming intervention in the banking sector.

Tagschina, Guo Shuqing, China Banking Regulatory Commission, China Banking System