China Caps Annual Salaries of State-Backed Financial Executives at RMB 3 Million (US$412,460)

Jul 5, 2024, 04:46 PM

China has announced a significant policy change, capping the annual salaries of financial sector executives at RMB 3 million (US$412,460) for those working in state-backed institutions, including banks, mutual funds, and brokerages. This measure, part of broader reforms initiated by President Xi Jinping, aims to make finance serve the real economy and the nation, reversing the Wall Street model. The salary cap will be applied retroactively, meaning those who earned more than the specified amount in recent years may have to return the excess money. The reforms are seen as a move to curb excessive capitalism and align the financial sector with China's common prosperity goals.