CIC, PetroChina, BOC Heads Get Communist Party Promotions
The chairmen of China’s sovereign wealth fund, largest energy company, fourth-biggest bank and top airplane maker were given higher positions in a ruling Communist Party undergoing a once-a-decade leadership change.
China Investment Corp.’s Lou Jiwei, China National Petroleum Corp.’s Jiang Jiemin, Bank of China Ltd.’s Xiao Gang and Aviation Industry Corp. of China’s Lin Zuoming were yesterday named full members of the Communist Party’s central committee. The four were previously alternate members.
State-owned enterprises dominate industries in China including oil, banking and transportation and account for the 20 largest companies by weighting in the nation’s Shanghai Composite Index. (SHCOMP) More than 25 percent of government controlled firms are unprofitable and their productivity growth has trailed that of private businesses in the past three decades, the World Bank said in February.
The 205 full members of the Central Committee and another 171 alternates were announced after the close of the 18th Communist Party Congress yesterday. The Politburo Standing Committee, China’s top decision-making body, will be drawn from the Central Committee’s membership and will be announced today.
CIC’s Lou, 61, served in the People’s Liberation Army, was deputy governor of the southwestern province of Guizhou and was a deputy finance minister before joining CIC, which oversees about $482 billion in assets.
CNPC’s Jiang, 57, worked as deputy governor of the western Chinese province of Qinghai from 2000 to 2004 and was appointed chairman of listed unit PetroChina Co. in May 2007. He has been chairman of CNPC since November 2011, according to the company’s website.
Bank of China’s Xiao was the only chief executive officer from the country’s five largest lenders to ascend to the central committee. Xiao, 54, an alumnus of Hunan University of Finance and Economics, joined Bank of China in 2003 after more than 20 years at the nation’s central bank.
“It’s unlikely that there will be any major changes in the bank’s strategy just because its chairman is now a member of the central committee,” said Rainy Yuan, a Shanghai-based analyst at Masterlink Securities Corp. (2856)
Industrial & Commercial Bank of China Ltd. Chairman Jiang Jianqing, Agricultural Bank of China Ltd. Chairman Jiang Chaoliang, China Construction Bank Corp (939) Chairman Wang Hongzhang and Bank of Communications Co. Chairman Hu Huaibang were named alternate members of the central committee.
China Aerospace Science & Technology Corp. President Ma Xingrui was also named to the central committee, according to a list of members published by the official Xinhua News Agency.
Baosteel Group Corp. Chairman Xu Lejiang, Commercial Aircraft Corp. of China Ltd. Chairman Jin Zhuanglong, China Telecom Corp. Chairman Wang Xiaochu and Haier Group Chairman Zhang Ruimin were named as alternate members of the central committee.
In the energy sector, Shenhua Group Corp. Chairman Zhang Xiwu was picked as a alternate member to the committee. Wang Yilin, Chairman of China National Offshore Oil Corp., and Cao Peixi, General Manager of China Huaneng Group Corp., were both named to the Central Commission for Discipline Inspection.
“It’s better to be on the lists than not, but you cannot read too much into it either,” said Lin Boqiang, director of Xiamen University’s Center for Energy Economics Research. “Promotion, demotion or departure of top leaders aren’t unusual in state-owned enterprises, and such changes usually have little impact on overall performance of the companies.”