Chinalco Appoints New President      

The Aluminum of Corporation of China (Chinalco) said on February 17th it has appointed Xiong Weiping as president to replace Xiao Yaqing.
   Mr. Xiao, who has just signed a US$19.5 billion deal for Chinalco to invest in Rio Tinto Group, will be working as a deputy secretary general of the State Council, becoming a government official.
   Market participants said the Chinalco management reshuffle is generally reasonable, albeit a bit unexpected because the timing. Chinalco's development has been on a fast track in recent years and it's not rare in China that managers of state-owned enterprises being promoted to high-level government positions because of their excellent management. But this time things are somewhat unexpected because the reshuffle came at a time when Chinalco was at a crucial stage to reach an agreement with Rio Tinto on the investment.
   Commenting on Xiao's contribution to Chinalco, industry insiders said Chinalco, which acquired a 9% stake in Rio Tinto in 2008, has set a role model for Chinese state-owned companies in becoming an international powerhouse.
   The true essence of being geared to the international standards is that one domestic company should conduct mergers and acquisitions in the international markets with skillful capital operation and market-oriented means in compliance with foreign regulations. Chinalco has experienced in the internationalized development by the deals.
    Xiao has been challenged by questions from the press several times as how he thought of the huge book loss made from its investment in Rio Tinto. Frankly, Xiao replied, "What we bought are physical assets while stock price is only a virtual symbol. It's irrational itself to judge the success or failure of an investment by simply looking at the price volatility of the stock market."
    "What's more, as mineral resources are scarce in a long-term view, along with the fact that China is relying on such resources to drive its economic development hasn't changed, the deal is positive for Chinalco, a resource-focused company, in long run."
   Industry people expect the new comer of Chinalco could lead the company to develop in an even faster pace.