New chairman must continue along refrom path for market

Perhaps the stock market index will rise today following the news over the weekend that the head of China Securities Regulatory Commission has been replaced.

Xiao Gang became chairman of the CSRC in March 2013, when the Shanghai Composite Index was around 2,200 points. After three tumultuous years, especially the stock market rout last summer, he is being replaced by Liu Shiyu, the former chairman of the Agricultural Bank of China, with the market index 2,800 points at the close on Friday.

Whether the index goes up or down on the news, it will only be temporary. A change of CSRC's boss will have no bearing on the long-term performance of the market.