China Merchants Group, China Everbright Group and Citic Group Corp. are among state entities that have conveyed the guidance to employees at some of their units in recent weeks, said the people, asking not to be identified discussing a private matter. Some mutual fund managers are also being pressured to return non-compliant pay earned in previous years, the people said.
The era of big paycheques for Chinese financiers is fast coming to an end as some of the industry’s biggest companies impose strict new limits to comply with President Xi Jinping’s “common prosperity” campaign.
The nation’s largest financial conglomerates have asked senior staff to forgo deferred bonuses and in some cases return pay from previous years to comply with a pre-tax cap of 2.9 million yuan ($540,000), according to people familiar with the matter.
