China confirms Vice-Premier He Lifeng as head of new Communist Party finance body aimed at stronger control over sector

Beijing confirmed a new role for Vice-Premier He Lifeng as head of a new Communist Party organisation on financial work as China’s ruling party seeks to strengthen control over the financial sector.

The report, published on Monday, referred to He’s role as director of the general office of the commission – the first official confirmation of the vice-premier’s new title.

Investors worry as China’s Communist Party cements control over finance

During the meeting, He stressed that the most important political task for those in the financial system was to study and carry out the “essence of the central financial work conference”, headed by President Xi Jinping in Beijing last week.

He said the party’s leadership in financial work must be strengthened and there must be more “inspection and rectification” of financial systems to promote strong financial supervision, risk prevention and high-quality development.

He will visit the United States from Wednesday to Friday as Beijing’s lead person for China-US economic and trade affairs – a title confirmed in July – at the invitation of US Treasury Secretary Janet Yellen, according to China’s foreign ministry.

Also at the meeting on Friday were He’s two deputies at the general office, executive deputy director Wang Jiang, former head of state-owned financial giant China Everbright Group, and Xia Xiande, former finance vice-minister, as well as Qin Bin, former deputy director of the supervisory commission of Guangxi Zhuang autonomous region.

Beijing has been tightening control over its financial system. The finance commission, established in March, grants the Communist Party more control in key domains such as finance and technology.

It is under the direct supervision of the party’s top decision-making body, the Central Committee, and serves as the primary planner for the country’s financial system, overseeing matters ranging from overall stability to funding for the real economy and the overseas use of the yuan.

He, 68, was promoted to vice-premier in March and was confirmed on October 29 as the director of the general office of the Central Financial and Economic Affairs Commission – a separate body that is one of the most powerful party organisations chaired by Xi.

The Central Financial and Economic Affairs Commission has issued a wide range of policy directives, including plans to reduce market uncertainties, deal with a property crisis, bail out heavily indebted local governments and shore up the weak economy.

He was also given a more expansive portfolio on trade compared to his predecessor Liu He, who is now Beijing’s point man on trade ties with the US, European Union, Germany and France.

However, official records show that unlike Liu, He has not taken on responsibilities related to technology or manufacturing, which have been assumed by Vice-Premiers Ding Xuexiang and Zhang Guoqing, respectively.