Chinese Financial Giants Impose Strict Pay Limits

Chinese financial firms, including China Merchants Group, China Everbright Group, and Citic Group Corp, are imposing strict pay limits to comply with President Xi Jinping's 'common prosperity' campaign, asking senior staff to return excess pay and forgoing deferred bonuses to meet a pre-tax cap of 2.9 million yuan (approximately US$400,000). The move aims to address income inequality, impacting top-earning finance workers and mutual fund managers. This initiative reflects tighter Communist Party control over the $66 trillion financial industry, with some proposing capping staff salaries at around 3 million yuan. Institutions like Citic Securities have executives earning well above these limits. The pay restrictions come amidst broader anti-graft inspections in China's financial sector, signaling a significant shift in industry practices.