Xiao gang stepping down from ministry of tourism

Xiao, 57, tendered his resignation as CSRC chairman last week after his brainchild - a "circuit breaker" mechanism to limit market losses - was blamed for exacerbating a sharp sell-off, a source with ties to the leadership and a financial industry source told Reuters. The "circuit breaker" was deactivated on Jan. It is certain he will change jobs," the source close to the leadership said.

Both sources requested anonymity because they were not authorized to speak to the media. It was not known if Xiao's resignation offer had been accepted by the central government. His term does not formally expire until end The abrupt suspension of the "circuit breaker" followed an unprecedented flurry of moves by the CSRC last year - including halting short selling and banning share sales by major shareholders - in a bid to stabilize markets after major indexes plunged more than 40 percent in the summer.

After rebounding by around 25 percent late last year, stock markets have tumbled again this month, dropping into bear market territory - usually a reference to a market's 20 percent slide from its last cyclical peak. This has rekindled concerns that policymakers are fumbling as China heads towards its slowest annual growth in a quarter of a century.

China is expected to report its weakest quarterly economic growth in nearly seven years on Tuesday, putting policymakers under more pressure to take bolder steps. The party's Organisation Department, or personnel ministry, has short-listed three candidates to succeed Xiao, the sources said. The CIRC declined immediate comment.

Beijing: China's embattled top securities

Another candidate is Huang Qifan, 63, mayor of the southwestern metropolis of Chongqing, who is also tipped to become secretary-general of the State Council, or cabinet, and may concurrently serve as CSRC chairman, the sources said. If confirmed as cabinet secretary-general, Premier Li Keqiang's right-hand man, Huang would have to tackle a stalling economy and market turbulence as well as oversee the entire spectrum of portfolios: from industry to agriculture, energy, the environment, state planning and technology, according to a Reuters report last week.

Following the Reuters report that Xiao offered to resign, some Chinese investors took to Weibo, with one saying: "This is expected, but also unexpected. Whoever takes over will face a tough job in cleaning up the mess.