(March 17): Some senior bankers at China’s state-backed financial firms are bracing for bonus cuts of at least 30% as Beijing intensifies a sweeping remuneration reform across its US$69 trillion (RM270.4 trillion) financial sector. Historically, mid-level managers at Chinese financial firms have frequently out-earned top executives, whose salaries are strictly capped due to their status as Communist Party officials. Slashing bonuses is the most effective lever, as variable pay typically accounts for 50% to 70% of a manager’s total compensation package. One major state-owned insurer cut 2024 bonuses for mid-level managers by at least 30% late last year, according to a person familiar with the decision. The bonus cuts are the latest sign of Xi’s tightening grip on a sector where high compensation has been questioned amid a stuttering economy.

Source: The Edge Markets March 17, 2026 08:46 UTC