QUOTES-Reactions to China replacing the head of securities regulator

(Adds more reaction at top of story)

Feb 7 (Reuters) - China has replaced the head of its securities regulator, state media said on Wednesday, after stocks sank to five-year lows amid a sputtering economy and persistent uncertainty over how the country's policymakers plan to stabilise financial markets and the shaky economy.

The cabinet removed Yi Huiman as the chairman of China's Securities Regulatory Commission (CSRC), replacing him with Wu Qing, a veteran securities regulator who had lead the Shanghai Stock Exchange.

Here is what analysts said about the change:

LINDSAY JAMES, INVESTMENT STRATEGIST AT QUILTER INVESTORS, LONDON

“This change in leadership comes at a time when the Chinese stock market has not only been a standout underperformer in 2023 and so far in 2024, but it has also made a number of own-goals due to perceived overreach of regulation into sectors including education, internet platforms, and most recently, gaming.

“The China Securities Regulatory Commission has already been acting to try and shore up markets with curbs on short-selling, but this change at the top may be a signal that it is expected to go further. However, with the reputation of the incoming head being fairly hardline, it appears the government is not about to loosen its grip on the business sector.”

GEORGE MAGNUS, RESEARCH ASSOCIATE AT OXFORD UNIVERSITY'S CHINA CENTRE, BRITAIN

"It's expected, really. Under circumstances in which, according to reports, the stock market rout has gone all the way up to (President) Xi Jinping, somebody’s going to have to be held responsible. He's not the first CSRC head to roll. It's part of the kind of script of accountability according to the governance structure of the CCP (China's Communist Party) - I don't think he was responsible for what happened.

“Obviously, the government seems to be quite keen to stop the rot so to speak before (Lunar) New Year," the long holiday which begins this weekend.

“I think this is very unlike 2015-16, which was really a post-bubble reaction for which the authorities actually were responsible to an extent. There is something more going on here than just a kind of a post-speculative episode, which may take actual policies to stop. The market can certainly bounce but I doubt very much it would be durable, to be honest."

GEOFFREY YU, SENIOR EMEA MARKET STRATEGIST AT BNY MELLON, LONDON

"Without opining on the individual decision, Beijing is clearly serious about stabilising the market, as shown in recent statements. There are different avenues to pursue but we are now more focused on: 1) any fiscal measures, especially supportive for the households, which could be announced at the March NPC (National People's Congress), or earlier; and 2) prospects for structural form. We emphasise support for the households is essential for sentiment and this requires a broad-based effort from various layers of government."

RYOTA ABE, ECONOMIST, GLOBAL MARKETS & TREASURY, SMBC, SINGAPORE

"I believe there is an additional clear message that the government will support the stock market because of the newly assigned Wu Qing, who may introduce more measures to support the market given his experience. Anyway, the core substance of the government’s intention is very clear."

CHRISTOPHER BEDDOR, DEPUTY CHINA RESEARCH DIRECTOR AT GAVEKAL DRAGONOMICS, HONG KONG

"This is clearly going to reinforce the longstanding perception that China’s securities regulator is not just a neutral referee, but also responsible for the outcome of the game. It sends an unambiguous message to many officials that failure to do enough to stop the market decline can and will have career-ending consequences."

ALFRED WU, ASSOCIATE PROFESSOR AT THE LEE KWAN YEW SCHOOL OF PUBLIC POLICY AT THE NATIONAL UNIVERSITY OF SINGAPORE

"China’s public governance isn’t purely about who can do the best job. It’s about firefighting. The Politburo and the Standing Committee, they’re very upset about the Chinese stock market and they’re not thinking about it from a market perspective. They’re thinking: who can we put in place to replace Yi Huiman?

"Wu Qing can’t do much more than anybody else, because the market will work as the market does.

"China needs to respect market principles, but those at the highest levels ... are not happy, meaning ordinary bureaucrats and ministers need to take accountability and take culpability for that."

TIM GRAF, HEAD OF EMEA MACRO STRATEGY AT STATE STREET, LONDON:

"As a knee-jerk reaction, I can see how this would be viewed as positive. But in addressing the well understood issues of the Chinese economy, it doesn't address anything at all."

XU TIANCHEN, SENIOR ECONOMIST AT THE ECONOMIST INTELLIGENCE UNIT, BEIJING

"The selloff was clearly the last straw for Yi - it's not the first time China fired a CSRC chairman during a market rout. This change signals the leaders' willingness to turn the market around." (Reporting by London, Beijing and Shanghai newsrooms; compiled by Marius Zaharia; Editing by Kim Coghill)