Breaking News
Investing Pro 0
Cyber Monday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

China regulator denies it asked foreign banks for executive pay details

Economy Jun 14, 2022 05:20AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A Chinese national flag flutters outside the China Securities Regulatory Commission (CSRC) building on the Financial Street in Beijing, China July 9, 2021. REUTERS/Tingshu Wang
 
GS
+0.68%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
UBSG
-0.49%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

SHANGHAI/HONG KONG (Reuters) - China's securities regulator on Tuesday denied that it and its securities association had asked foreign investment banks for senior executives' pay details or suggested they implement pay curbs, rejecting media reports.

Bloomberg reported on Friday that Chinese regulators had warned top global banks, during meetings in Shanghai and Beijing this year, against paying their top bankers in China lavishly.

"The reports are not factual," the China Securities Regulatory Commission (CSRC) said in a statement, adding that no such meetings were held.

The regulator did not specify which reports its statement referred to.

Bloomberg reported that banks, such as Goldman Sachs Group Inc (NYSE:GS). Credit Suisse Group AG and UBS Group AG (SIX:UBSG), were asked to reduce cash compensation and extend deferred bonuses to three years or more.

GUIDELINES

As part of President Xi Jinping's "common prosperity" drive, Beijing is seeking to reduce wealth gaps while curbing disorderly expansion of capital.

China's securities and fund associations are urging the country's brokerages and fund houses to set up a sound remuneration system, warning that excessive, or short-term incentives could trigger compliance risks.

The CSRC said on Tuesday that the salary guidelines are designed to "prevent institutions from over-incentivising in the short term" and it has not introduced caps or specific measures on how staff are compensated.

"The CSRC fully respects the discretionary business decision-making of financial institutions," the regulator said.

OPENING SECTOR

Wall Street banks have been aggressively hiring in China, which has allowed majority and fully foreign-owned investment banks and fund management companies to operate onshore as part of its broader opening of a financial services sector worth trillions of dollars.

Eleven foreign firms have managed to take majority or full control of their China units, the CSRC said.

Goldman Sachs and J.P. Morgan are among Western banks moving toward full ownership of their China securities businesses.

China regulator denies it asked foreign banks for executive pay details
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email