China Fires Top Securities Regulator

China has removed its top securities regulator.

The official Xinhua news agency reported Xiao Gang's dismissal Saturday.

The move was not unexpected following a turbulent period in China's stock market.

Xiao was responsible for introducing the "circuit breaker" designed to limit stock market losses. However, it only added to the securities market turmoil and was deactivated after only four days of use.

Liu Shiyu, chairman of the Agricultural Bank of China and a former deputy governor of the central bank, is the new securities regulator.

It was not immediately clear what measures Liu would enact to restore confidence in the Chinese stock market.

Zhang Kaihua, a fund manager of Nanjing-based hedge fund Huyang Investment, said, "Liu has a lot of experience in the financial sector, but there will be some policy uncertainty in the short term as it will take at least six months for the former banker to get used to his new role."

U.S. Federal Reserve Chair Janet Yellen said recently that uncertainty about China's currency policies and its economic prospects have contributed to "increased volatility in global markets.