Lou, an outspoken Communist Party veteran, had been picked for the job for his competence rather than a close relationship with President Xi Jinping in the early days of the administration.

The reason why the move is largelyseen as symbolic, and one hinting at the future of China's financial reform, or lack thereof, is that as the WSJ writes, his removal raises questions about whether reform-minded officials are being sidelined as Beijing prioritizes short-term growth over major overhauls.

In his previous role as head of China Investment Corp., Lou vaulted the giant sovereign-wealth fund into the major league of global investment funds. He won the race to be the first finance minister under Mr. Xi, who had set out to give market forces a bigger role in China's economy, largely because of his expertise on the country's convoluted tax and fiscal system, according to the party officials with knowledge of the matter. However, it was not meant to be.