China replaces top securities regulator in charge of supporting stock prices

China's state-run media have reported that the country's leadership has decided to replace the head of the nation's Securities Regulatory Commission amid the downward trend in stock prices.

State-run Xinhua News Agency says the government decided on Wednesday to appoint a deputy secretary of the Communist Party Shanghai Committee, Wu Qing, as chairman of the commission, replacing Yi Huiman.

The reason for this decision has not been made clear, but market players speculate that Yi has been dismissed due to falls in the stock market.

The commission is tasked with supervising efforts to expose illegal activities on stock deals and decide policies about stock market operations.

It was responsible for efforts to put a brake on the drop in share prices due partly to slumps in the property market.

The commission has tightened restrictions on short selling and encouraged firms to buy back shares since last month.

Yi had served as the commission chairman since January 2019.