CIC head to become finance minister

The head of China’s US$410-million sovereign wealth fund is the front-runner to become the country’s next finance minister, as top leaders including Party Secretary Hu Jintao and Premier Wen Jiabao hand over power to a new generation of officials this year, Reuters reported, quoting two independent sources. Lou Jiwei, the current head of China Investment Corporation, is tipped to replace Xie Xuren as head of the Finance Ministry, the body at the forefront of efforts to tackle US$1.7 trillion in debt which local governments have amassed since China launched a stimulus program to combat the financial crisis. The move could also help China in its efforts to diversify the investment of its US$3.2 trillion in foreign exchange reserves, said Li Jie of the Central University of Finance and Economics’ Reserves Research Institute. China appointed new regulators to head its banking, securities and insurance watchdogs in October.