Following adjustments imposed as part of a broader campaign to minimise wealth disparity, China’s securities regulator and central bank reduced budget allocation for staff pay in 2023.

The China Securities Regulatory Commission (CSRC) budget report for 2023 was released on Friday, while the People’s Bank of China (PBOC) budget report was revealed in late March.

According to Reuters calculations based on the CSRC’s budget report, the CSRC’s budget for overall staff pay and perks has reduced to 170.3 million yuan ($24.64 million), 17% less than in 2022.

According to Reuters calculations, the PBOC’s salary and stipend budget was 10.6% lower at 21 billion yuan ($3.04 billion).

Analysts suggested central bank and CSRC employees could suffer wage cutbacks as a result of financial regulatory reforms announced in March, which called for their remuneration to be equal to that of public workers. The reforms also called for a 5% reduction in staffing.

Wages at prominent Chinese investment banks have been moving downward as the economy has slowed and the government’s “common prosperity” rhetoric has been used.

In February, China’s anti-corruption commission committed to remove conceptions of a “financial elite,” “parity with the West,” hedonism, the obsessive pursuit of money, and “high-end tastes.”

(Adapted from AsiaFinancial.com)

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