China’s state financial sector braces for ‘one of the toughest years’
- Executives say morale has plummeted since an overhaul was announced in March
- It aims to fight corruption and bring the sector under more direct control of the party
Executives working in China’s state-owned financial institutions say they are bracing for “one of the toughest years” they have seen, as Beijing seeks to tighten its grip on the sector.
That means no more wining and dining, as belt-tightening and pay cuts become the norm, along with long hours of compulsory ideological training.
The executives, who declined to be named, said the campaign was now the top priority at their companies and was expected to run well into autumn.
They described the uncertainty brought by the “relentless” ideological and anti-corruption drives, and sharp pay cuts in the range of 15 to 20 per cent of their basic salaries, with annual bonuses set to be slashed by at least 30 per cent this year.
A manager at a state-owned securities firm in Shanghai said a recent ideological study session at the company was on the Red Army’s Long March.
“Probably our party secretary wants us to be mentally prepared for tougher times ahead,” he said. “State-owned financial companies aren’t an exception. They’re also part of China’s austerity drive at a time when the economy isn’t doing well, and as many civil servants get their pay cut too.”