This puts him in line as the next PBOC governor and is likely a directive for Yi Gang to step down from the post. Yi has been in charge of China's central bank since 2018. As for Pan, he replaces Guo Shuqing as party secretary for the central bank with Guo now officially removed from his post as PBOC vice governor as well.
So, what does this tell us?
The reshuffle comes amid a time where the post-Covid recovery in China has pretty much come to a complete halt. It also comes as the yuan exchange rate is coming under pressure and also as Beijing are introducing a host of measures to try and tighten its grip on the financial sector.
According to Reuters sources, Pan's appointment points to growing concerns within the country's leadership over systemic risks in the financial sector. The way I see it, this is pretty much Beijing consolidating its power and policy direction as it looks to ensure a continuity of the ongoing monetary policy stance.
