Money Matters | Xiang’s dismissal shows Xi is picking his battles, and letting the old power brokers be, for now

In China’s corridor of power, what has been said is never telling; what has not, is.

The recent dismissal of the Chinese insurance regulator tells us that President Xi Jinping is more interested in getting a firm grip over the country’s financial industry than having a full blown war with the old power brokers of the Communist Party – at least for the moment.

Here is what has been said.

Xiang Junbo, who has been leading the insurance watchdog since 2011, was removed last week from his job as chairman of the China Insurance Regulatory Commission (CIRC). This is not a surprise to anybody who’s been watching China’s insurance industry. Rumour of him being under investigation had been circulating since February.

Mainland media quickly associated his downfall with his days as chairman of the Agriculture Bank of China between 2007 and 2011. That remains the spin so far.

Xiang allegedly facilitated a 3.2 billion yuan (US$475 million) loan in 2010 to Beijing Zenith Holdings - a company controlled by several princelings. The money was used to build a prime office tower next to the nest-like Olympic Stadium in Beijing, known affectionately as the Bird’s Nest.