Amid a deepening economic crisis driven by the crumbling real estate sector, China has appointed a new finance minister who is tasked with steering the nation away from the troubled waters.

A statement released by the finance ministry on Thursday (Sep 28) revealed that finance specialist Lan Foan will now helm the Ministry of Finance’s Communist Party group, replacing Liu Kun.

The 61-year-old leader was previously holding the position of the party chief of the northern Chinese Shanxi province.

Liu Kun, who held the coveted position since 2018, will turn 67 this year, much beyond the normal retirement age of 65 for civil servants of ministerial rank.

<h2>‘Positive development’</h2>

According to experts, the change in leadership in the finance ministry is a positive development for the country’s economic outlook.&nbsp;

Zhang Zhiwei, chief economist at Pinpoint Asset Management, was quoted by SCMP as saying that the finance ministry reshuffle is “a positive development” for the economy and “indicates the policy stance may become more expansionary”, but it could take time.

“The change of policy may not happen immediately, as we are already close to the end of this fiscal year. Nonetheless this move makes a change in fiscal policy more likely next year, which is positive for the economy,” he said.

<h2>Provincial governments under stress</h2>

One of the biggest challenges before Lan Foan would be to tackle the burgeoning debt crisis on the provincial level. China has traditionally relied on provincial governments to inject financial stimulus into the economy but now experts warn that the central government should shoulder more burden.

Watch:&nbsp;Pak-China's disagreements on CPEC surface: China refuses expansion in key areas

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/pak-chinas-disagreements-on-cpec-surface-china-refuses-expansion-in-key-areas-639778/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>
</div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

“Currently, many local governments are financially stretched, and Beijing is reluctant to push through more local government-led fiscal stimulus. The central government could shoulder more of the burden, but remains reticent,” Louis Kuijs, chief economist for Asia-Pacific at Standard and Poor’s Global Ratings, was quoted as saying by SCMP.

<h2>China’s hidden debt problem</h2>

There are also potential default risks posed by local government financing vehicles (LGFVs) in China, primarily stemming from subdued revenue growth prospects in some highly indebted regions of the country.

LGFVs are unique entities that straddle the line between public and corporate, initially designed to navigate around constraints on local government borrowing. Their prevalence has surged since the 2008 global financial crisis.

<a href="https://www.wionews.com/world/sadness-in-washington-zoo-as-the-us-preps-to-return-pandas-to-china-640514">Also read:&nbsp;Sadness in Washington Zoo as US prepares to return pandas to China</a>

According to estimates from the International Monetary Fund, China's total LGFV debt has surged to a historic 66 trillion yuan (equivalent to US$9 trillion) this year, more than doubling the 30.7 trillion yuan recorded in 2017.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" loading="”lazy”" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>
</div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

&nbsp;

Amid a deepening economic crisis driven by the crumbling real estate sector, China has appointed a new finance minister who is tasked with steering the nation away from the troubled waters.

Amid a deepening economic crisis driven by the crumbling real estate sector, China has appointed a new finance minister who is tasked with steering the nation away from the troubled waters. A statement released by the finance ministry on Thursday (Sep 28) revealed that finance specialist Lan Foan will now helm the Ministry of Finance’s Communist Party group, replacing Liu Kun. The 61-year-old leader was previously holding the position of the party chief of the northern Chinese Shanxi province. Liu Kun, who held the coveted position since 2018, will turn 67 this year, much beyond the normal retirement age of 65 for civil servants of ministerial rank. ‘Positive development’ According to experts, the change in leadership in the finance ministry is a positive development for the country’s economic outlook. Zhang Zhiwei, chief economist at Pinpoint Asset Management, was quoted by SCMP as saying that the finance ministry reshuffle is “a positive development” for the economy and “indicates the policy stance may become more expansionary”, but it could take time. “The change of policy may not happen immediately, as we are already close to the end of this fiscal year. Nonetheless this move makes a change in fiscal policy more likely next year, which is positive for the economy,” he said. Provincial governments under stress One of the biggest challenges before Lan Foan would be to tackle the burgeoning debt crisis on the provincial level. China has traditionally relied on provincial governments to inject financial stimulus into the economy but now experts warn that the central government should shoulder more burden. Watch: Pak-China's disagreements on CPEC surface: China refuses expansion in key areas × “Currently, many local governments are financially stretched, and Beijing is reluctant to push through more local government-led fiscal stimulus. The central government could shoulder more of the burden, but remains reticent,” Louis Kuijs, chief economist for Asia-Pacific at Standard and Poor’s Global Ratings, was quoted as saying by SCMP. China’s hidden debt problem There are also potential default risks posed by local government financing vehicles (LGFVs) in China, primarily stemming from subdued revenue growth prospects in some highly indebted regions of the country. LGFVs are unique entities that straddle the line between public and corporate, initially designed to navigate around constraints on local government borrowing. Their prevalence has surged since the 2008 global financial crisis. Also read: Sadness in Washington Zoo as US prepares to return pandas to China According to estimates from the International Monetary Fund, China's total LGFV debt has surged to a historic 66 trillion yuan (equivalent to US$9 trillion) this year, more than doubling the 30.7 trillion yuan recorded in 2017. WATCH WION LIVE HERE ×

Who is Lan Foan, China’s new finance minister? Why is his appointment crucial?

Turmoil unleashed by Britain&#39;s vote to leave the EU engulfed the opposition Labour Party, while policymakers as far away as China, Japan and South Korea fretted today over the threat to global financial stability, hours before markets reopen. 
 
In the oldest parliamentary democracy, three million Britons have signed a petition calling for a re-run of Thursday&#39;s referendum that split the nation, and one opinion poll showed a strong majority of Scots now want to break with the United Kingdom rather than with the European Union. 
 
Labour&#39;s left-wing leader Jeremy Corbyn sacked his foreign policy chief as the party plunged into open conflict. 
 
His health chief responded by resigning, calling for a new leader and reflecting accusations among pro-EU lawmakers that Corbyn&#39;s failure to win over traditional Labour voters had played a major role in the referendum result. 
 
Sacked foreign affairs spokesman Hilary Benn also called for Corbyn, who was elected last year largely by Left-wing party members and supporters, to go. &quot;He is a good and decent man but he is not a leader,&quot; Benn told BBC television. 
 
The 52-48 per cent referendum vote marked the biggest blow since World War II to the European project of forging greater unity across the continent. 
 
Sterling fell as much as 10 per cent against the Dollar on Friday to levels last seen in 1985, while world stocks saw more than $2 trillion wiped off their value. The weekend gave some respite from the turmoil, but with markets opening shortly in Asia, anxiety is growing. 
 
Prime Minister David Cameron resigned on Friday after Britons ignored his passionate appeals to stay in the EU, but left formally notifying Brussels of Britain&#39;s exit to his successor, who is unlikely to be in office for about three months. That signals a long period of limbo. 
 
Chinese Finance Minister Lou Jiwei said the vote &quot;will cast a shadow over the global economy&quot;. 
 
&quot;It&#39;s difficult to predict now,&quot; he said at the first annual meeting of the Asian Infrastructure Investment Bank in Beijing. &quot;The knee-jerk reaction from the market is probably a bit excessive and needs to calm down and take an objective view.&quot; 
 
Japan likewise fretted over the effect on the global currency market and contemplated official action. &quot;Speculative, violent moves have extremely negative effects,&quot; said Tomomi Inada, policy chief of the ruling LDP party. &quot;If necessary, the government should not hesitate to respond, including currency intervention,&quot; Nikkei daily quoted him as saying. 
 
Prime Minister Shinzo Abe has tried to engineer a weaker Yen to encourage exports to help revive the Japanese economy. But after initial success, investors have sought safety in the Yen this year due to stock market turmoil and now the Brexit vote, pushing the currency back up. 
 
No respite 
 
South Korea&#39;s finance minister also said he feared international markets will remain volatile throughout negotiations on the British exit. 
 
The United States, which during campaigning made clear it wanted Britain to stay in the EU, also showed signs of unease. 
 
Secretary of state John Kerry will meet EU foreign policy chief Frederica Mogherini in Brussels and British Foreign Minister Philip Hammond in London on Monday. 
 
The visit is largely meant to offer symbolic reassurance at a critical juncture for Europe, but a senior US official said Kerry would also stress the importance of other members not following Britain&#39;s lead and further weakening the EU. 
 
Despite the international expressions of concern, respite from the uncertainty is unlikely for months, at the very least. 
 
Cameron has offered to stay on as a caretaker, but he has refused to invoke Article 50 of the EU&#39;s Lisbon Treaty, which allows for two years of exit negotiations. Instead he left that job to his successor, who is due to be elected by his Conservative Party sometime before its annual conference in October. 
 
Only after the new leader has invoked can work on thrashing out Britain&#39;s new relationship with the bloc begin. The man widely tipped as the next prime minister is former London mayor Boris Johnson, the most prominent member of the campaign to leave the EU. 
 
No lying down 
 
Signs are growing that not all the 16 million Britons who voted to stay in the EU are willing to take the result lying down. Many flocked to back an online petition demanding a second vote, with signatures exceeding three million today morning, more than double the figure the previous afternoon. 
 
The petition, posted on Parliament&#39;s website before the referendum, said there should be another vote if the outcome was close on a turnout of less than 75 per cent - three points above Thursday&#39;s figure. 
 
It will have to be considered for debate by lawmakers, but has no legal force and its backers compare with the 17.4 million who voted &quot;leave&quot;. 
 
The referendum has also re-energised support for Scotland, which voted overwhelmingly to remain in the EU, to break away from the United Kingdom instead. 
 
An opinion poll in The Sunday Post said 59 per cent of respondents backed independence, rocketing from 45 per cent of votes cast in a referendum in 2014. 
 
Scottish first minister Nicola Sturgeon has said a fresh independence referendum is possible 
 
&quot;My challenge now as first minister is to work out how I best protect Scotland&#39;s interests, how I try to prevent us being taken out of the EU against our will with all of the deeply damaging and painful consequences that that will entail,&quot; she told the BBC&#39;s Andrew Marr show.&nbsp; 
 
(Reuters)

The 52-48% referendum vote marked the biggest blow since World War II to the European project forging unity across the continent

Turmoil unleashed by Britain's vote to leave the EU engulfed the opposition Labour Party, while policymakers as far away as China, Japan and South Korea fretted today over the threat to global financial stability, hours before markets reopen. In the oldest parliamentary democracy, three million Britons have signed a petition calling for a re-run of Thursday's referendum that split the nation, and one opinion poll showed a strong majority of Scots now want to break with the United Kingdom rather than with the European Union. Labour's left-wing leader Jeremy Corbyn sacked his foreign policy chief as the party plunged into open conflict. His health chief responded by resigning, calling for a new leader and reflecting accusations among pro-EU lawmakers that Corbyn's failure to win over traditional Labour voters had played a major role in the referendum result. Sacked foreign affairs spokesman Hilary Benn also called for Corbyn, who was elected last year largely by Left-wing party members and supporters, to go. "He is a good and decent man but he is not a leader," Benn told BBC television. The 52-48 per cent referendum vote marked the biggest blow since World War II to the European project of forging greater unity across the continent. Sterling fell as much as 10 per cent against the Dollar on Friday to levels last seen in 1985, while world stocks saw more than $2 trillion wiped off their value. The weekend gave some respite from the turmoil, but with markets opening shortly in Asia, anxiety is growing. Prime Minister David Cameron resigned on Friday after Britons ignored his passionate appeals to stay in the EU, but left formally notifying Brussels of Britain's exit to his successor, who is unlikely to be in office for about three months. That signals a long period of limbo. Chinese Finance Minister Lou Jiwei said the vote "will cast a shadow over the global economy". "It's difficult to predict now," he said at the first annual meeting of the Asian Infrastructure Investment Bank in Beijing. "The knee-jerk reaction from the market is probably a bit excessive and needs to calm down and take an objective view." Japan likewise fretted over the effect on the global currency market and contemplated official action. "Speculative, violent moves have extremely negative effects," said Tomomi Inada, policy chief of the ruling LDP party. "If necessary, the government should not hesitate to respond, including currency intervention," Nikkei daily quoted him as saying. Prime Minister Shinzo Abe has tried to engineer a weaker Yen to encourage exports to help revive the Japanese economy. But after initial success, investors have sought safety in the Yen this year due to stock market turmoil and now the Brexit vote, pushing the currency back up. No respite South Korea's finance minister also said he feared international markets will remain volatile throughout negotiations on the British exit. The United States, which during campaigning made clear it wanted Britain to stay in the EU, also showed signs of unease. Secretary of state John Kerry will meet EU foreign policy chief Frederica Mogherini in Brussels and British Foreign Minister Philip Hammond in London on Monday. The visit is largely meant to offer symbolic reassurance at a critical juncture for Europe, but a senior US official said Kerry would also stress the importance of other members not following Britain's lead and further weakening the EU. Despite the international expressions of concern, respite from the uncertainty is unlikely for months, at the very least. Cameron has offered to stay on as a caretaker, but he has refused to invoke Article 50 of the EU's Lisbon Treaty, which allows for two years of exit negotiations. Instead he left that job to his successor, who is due to be elected by his Conservative Party sometime before its annual conference in October. Only after the new leader has invoked can work on thrashing out Britain's new relationship with the bloc begin. The man widely tipped as the next prime minister is former London mayor Boris Johnson, the most prominent member of the campaign to leave the EU. No lying down Signs are growing that not all the 16 million Britons who voted to stay in the EU are willing to take the result lying down. Many flocked to back an online petition demanding a second vote, with signatures exceeding three million today morning, more than double the figure the previous afternoon. The petition, posted on Parliament's website before the referendum, said there should be another vote if the outcome was close on a turnout of less than 75 per cent - three points above Thursday's figure. It will have to be considered for debate by lawmakers, but has no legal force and its backers compare with the 17.4 million who voted "leave". The referendum has also re-energised support for Scotland, which voted overwhelmingly to remain in the EU, to break away from the United Kingdom instead. An opinion poll in The Sunday Post said 59 per cent of respondents backed independence, rocketing from 45 per cent of votes cast in a referendum in 2014. Scottish first minister Nicola Sturgeon has said a fresh independence referendum is possible "My challenge now as first minister is to work out how I best protect Scotland's interests, how I try to prevent us being taken out of the EU against our will with all of the deeply damaging and painful consequences that that will entail," she told the BBC's Andrew Marr show. (Reuters)

British EU exit turmoil alarms Asia, rocks Labour opposition

chinese-finance-minister

Chinese Finance Minister, News on Chinese Finance Minister, stories on Chinese Finance Minister, articles on Chinese Finance Minister, Chinese Finance Minister stories at Wion, Chinese Finance Minister news, Chinese Finance Minister latest news

chinese finance-minister

Who is Lan Foan, China’s new finance minister? Why is his appointment crucial?

British EU exit turmoil alarms Asia, rocks Labour opposition