In a significant leadership transition within the ruling Communist Party of China, Pan Gongsheng has been officially announced as the country’s new central bank governor. The appointment, which took place on July 25, completes the much-anticipated major change of power within the party that occurs once a decade. Pan, a seasoned figure in China’s state-owned banking industry and a former deputy central bank governor, assumes the role previously held by Yi Gang, an American-trained economist who served as governor for five years.
Pan’s promotion to the central bank governorship was confirmed by the ceremonial legislature, the National People’s Congress, following other Cabinet-level appointments announced earlier in March.
As the governor of the People’s Bank of China (PBOC), Pan Gongsheng becomes the most prominent Chinese figure in finance circles. However, it’s important to note that the post’s powers are limited, as the bank is under the control of the ruling Communist Party. Nevertheless, Pan’s elevation to this key position highlights Beijing’s emphasis on policy continuity, especially at a time when the economic recovery is facing challenges, and officials are actively exploring ways to boost confidence.
Pan Gongsheng, who will turn 60 this month, has an impressive background in the financial sector. He joined the People’s Bank of China in 2012 and has previously held senior positions in state banks, including the Industrial and Commercial Bank of China Ltd. and Agricultural Bank of China Ltd. His experience and expertise in the banking industry have paved the way for his ascent to the top of the PBOC.
In 2015, Pan was appointed as the head of China’s foreign exchange regulator, which is often considered a stepping stone to the position of central bank governor. Furthermore, he holds a PhD in economics from Renmin University in Beijing and has conducted research at prestigious institutions like Cambridge and Harvard Universities.
Since being designated as the Communist Party secretary at the PBOC, Pan has engaged in numerous meetings with visiting central bankers, including South Korea’s Rhee Chang-yong, and participated in a central bank governors conference involving China, Japan, and South Korea in July. During her visit to Beijing, US Treasury Secretary Janet Yellen referred to Pan as the “acting governor.”
One notable aspect of Pan’s appointment is that it marks the first time since 2018 that the top two positions at the PBOC—governor and Communist Party secretary—will be held by a single individual. This potential streamlining of decision-making at the highest level signals Beijing’s commitment to ensuring stability and continuity during a critical juncture for the Chinese economy. Previously, former governor Zhou Xiaochuan held both positions until his departure in 2018, after which Yi Gang became governor while Guo Shuqing assumed the role of party chief.