China May Extend Financial Sector Pay Overhaul to Provincial Institutions

China’s sweeping pay reform in the financial sector is likely to expand beyond central government-controlled state-owned giants to include provincial-level institutions, affecting a wider swath of middle managers, Caixin has learned from multiple industry sources.

The news follows a directive issued recently by the Ministry of Finance to major state-owned financial enterprises. The initial guidelines were aimed at correcting a long-standing “pay inversion,” where middle managers often earn significantly more than top executives.