Lou Jiwei, a close protege of former Premier Zhu Rongji, has been promoted to the deputy secretary general of the State Council yesterday. This means that he and the investment organ he leads, will not be a puppet of the MOF or the PBOC, but will have the same rank as the two agencies. Also, as deputy secretary general, you are literally suppose to serve as the secretary for the premier or a vice premier, so is Lou's appointment in name only to give him the administrative cloute, or will he report to the next Vice Premier in charge of finance? Issues to work out: who will sit on the board (will there be a board?); how large will it be? How much asset will it invest itself, and how much will it farm out? I see a bright future for Lou, but then I said that about Qiu Xiaohua earlier........

From: http://finance.zgjrw.com/News/200737/Finance/671081338500.html

楼继伟被免财政部副部长职 任国务院副秘书长

2007年3月7日 8点6分 来源：财政部网站 发表评论查看评论

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原财政部副部长楼继伟 　　2006中国金融年度人物活动评选 　　据中国人事部消息，国务院日前任免国家工作人员。任命楼继伟为国务院副秘书长(正部长级)，免去其财政部副部长职务。 　　楼继伟简历：男，汉族，1950年12月生，浙江义乌人，1973年3月加入中国共产党，1968年2月参加工作，中国社会科学院研究生院数量经济学专业研究生毕业，获经济学硕士学位。 　 　1984年至1988年任国务院办公厅调研室财金组主任科员、副组长，1988年任中国社会科学院财经物资经济研究所成本价格室主任，1988年至 1992年任上海市经济体制改革办公室副主任，1992年至1995年任国家体改委宏观调控体制司司长，1995年至1998年4月任贵州省副省长、政府 党组成员，1998年4月至现在任财政部副部长、党组副书记。 十六届中纪委委员。

WSJ

Beijing Appoints Official To State Council Position

By RICK CAREW
March 7, 2007

BEIJING -- China confirmed the appointment of a senior Finance Ministry official as deputy secretary-general of the State Council yesterday, to lead preparations for a new agency that will more actively manage the country's foreign-exchange reserves.

Lou Jiwei, 56 years old, formerly a vice minister of finance, has been promoted to the ministry-level post, the State Council said on its Web site.

A person familiar with the situation said in February that Mr. Lou would be appointed to the position. Yesterday's government statement didn't mention his role in the agency, which is expected to manage a portion of the country's $1.07 trillion in reserves.

Financial markets are closely watching China's plans for the new entity -- in the works since late last year -- for signs of how much of the country's reserves will be shifted out of safe assets such as U.S. Treasurys and into higher-yielding, more-strategic investments.

Economists expect between $200 billion and $300 billion of the reserves to be allocated to the new agency.

Mr. Lou, an English speaker, was a key member of former Chinese Premier Zhu Rongji's unofficial brain trust of young economists, alongside current People's Bank of China Gov. Zhou Xiaochuan and China Construction Bank Corp. Chairman Guo Shuqing. Under Mr. Zhu's leadership all three helped shape China's financial overhauls in recent years.

Mr. Lou is known as one of the architects of China's 1994 tax overhauls, credited with boosting national revenue and strengthening the central government's grip on provincial governments.

He holds a master's degree in economics from the Chinese Academy of Social Sciences, a prominent government think tank and educational institution, and has served in numerous financial-policy positions in the government.

Before becoming vice minister of finance, he was a vice governor of the southwestern province of Guizhou.

Few details have emerged about the exact scope of the agency's investment. Vice Premier Zeng Peiyan has advocated that China invest more of its foreign-exchange reserves in strategic assets such as oil.

Mr. Lou's title of State Council deputy secretary-general indicates the new agency will be managed directly by the State Council, rather than fall under a particular ministry's authority.

Write to Rick Carew at rick.carew@dowjones.com