(June 28, 2013) — The $480 billion China Investment Corporation (CIC) is expected to reveal Ding Xuedong as the new chairman, following Lou Jiwei’s exit in March.
The Wall Street Journal reported in the early hours of Friday that Ding’s arrival was expected to be announced within the coming days by Chinese officials, though it stressed that the political system was opaque, and that circumstances could change.
Ding previously spent more than 10 years in the Ministry of Finance and most recently served as China’s vice finance minister, before being named as a deputy secretary-general of the State Council earlier this year.
If the appointment is confirmed, it would draw to a close a tumultuous time for the CIC.
A plethora of media articles reported the CIC was struggling to fill the position after two of the preferred candidates–Yi Gang, a central bank deputy governor and Tu Guangshao, Shanghai’s vice-mayor–had both rejected the job.
Whoever takes on the chairman role will come under pressure to maximize returns for the CIC, especially given China can no longer count on its foreign exchange reserves to grow. Export growth appears to have stalled, and imports are expected to catch up, narrowing the country’s trade surplus.
The South China Morning Post, which also reported his appointment, said Mr Ding was considered a “safe choice”.
And a CIC executive told the Financial Times that the fund’s staff were relieved to know they would soon have a new boss.
“We’ve been able to continue our day-to-day work, but major decisions have been put off waiting for this,” he said.
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