By withdrawing wages, state-owned companies can join the government’s “shared prosperity” campaign to tackle social inequalities due to slowing economic growth.
China Merchants FM has asked workers to return more than 3 million yuan in wages over the past five years, exceeding the new limit of a government initiative aimed at promoting economic equality. This was reported by Reuters on Wednesday, September 4.
The head of one of China’s top 10 funds has called on top executives to return salaries received in the past five years that exceeded the new limit as part of a government initiative aimed at promoting economic equality.
China Merchants Fund Management plans to roll back executive income exceeding the 3 million yuan ($421,000) limit for each year from 2019 to 2023.
By removing wages, state-owned companies can join the government’s “shared prosperity” campaign aimed at tackling social and income inequality due to slowing economic growth.
This is how the authorities encourage extravagant living among the financial elite. Fund managers are under the spotlight for their strong returns even when the stock market is underperforming.
In the first half of this year, auditors from the National Audit Office visited China Merchants FM and about a dozen fund managers. Auditors say some companies pay too high and are asking for salary caps and refunds.
The data shows that the basic salaries of senior executives and sales and investment managers range from 1.6 million yuan to 6 million yuan.
We previously reported that China’s economic growth has slowed. Key indicators show growth at a slower rate than forecast. In addition, serious trade problems continue to grow between Russia and China.
Let’s remember that China considers its cooperation with Russia to be normal and not directed against third parties.
Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.