Change in financial summit China

- China on Monday unexpectedly reformist finance minister, Lou Jiwei, replaced. The new Minister Xiao Jie (59) waits according to market researchers a big job in the power struggle with local authorities.

Xiao Jie has to rein in local rulers of big cities while keeping the growth of the second economy in the world by more than 6.5% per year.

The departure of the 65-year-old Lou Jiwei, after three years, according to news agencies could have major implications for the future of China's reforms, and especially for the financial system.

Investment bank Citigroup does not expect Xiao Jie will be able to provide in terms of restriction of local capital support to governments for major changes. \u0026 Nbsp;

Lou has put before local rulers financially to the chain, in particular to reduce the cost of borrowing for spending on major projects. This met with resistance when the growth of the Chinese economy remained.

The Chinese economy is facing major capital bubbles. The system, according to investment banks because of fragile recent years greatly inflated crediting for investment in infrastructure and housing, which barely provide returns.\n  \n  \n   advertisement

The operation is due to the summit in Beijing for the major Chinese Party Congress next year.

Lou is considered a veteran within the party, but is praised for his financial expertise, even more than his relationship with President Xi Jinping.