What’s new: China Friday removed the Communist Party chiefs from two of its biggest state-owned financial institutions — the People’s Insurance Co. Group of China (PICC) and Bank of China Ltd. (BOC).
PICC, China’s largest property insurer, said in a statement that party Secretary Luo Xi will step down from the post, without elaboration. Luo remains chairman of PICC. Caixin learned that PICC President Wang Tingke will temporarily assume Luo’s duties as party chief.
Separately, BOC, one of China’s biggest state-owned banks, said Chairman Liu Liange was removed as party chief, without giving a reason. Liu will also step down as BOC chairman after required corporate governance procedures, the bank said.
BOC President Liu Jin will temporarily assume Liu Liange’s duties, Caixin learned.
The context: The news of Luo’s removal as PICC’s party chief came as a surprise as many speculated that the 62-year-old was seeking to stay longer in the post to continue pushing forward restructuring of the company. Luo is set to retire by the end of the year according to party rules, which stipulate retirement at 63 for executives like Luo and Liu Liange.
Luo joined PICC in 2020 and since drove major overhauls of the insurer’s organization and personnel structures. His bold management approach sparked controversies. In January, PICC was criticized for building a personality cult when the company demanded employees recite his “golden quotes.”
BOC’s Liu Liange is also close to retirement age. The 61-year-old joined the BOC as president in 2018 and became the bank’s chairman in mid-2019.
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bob.simison@caixin.com)
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