China May Give Stocks, Market Wages to Workers at State Financial Firms
Liao Shumin
/SOURCE : Yicai
China May Give Stocks, Market Wages to Workers at State Financial Firms

(Yicai Global) July 9 -- China will explore the implementation of employee stock ownership plan in state-owned financial enterprises, which could bring workers in these companies more market-based salaries.

State-backed Xinhua News Agency released the Guiding Opinions of the CPC Central Committee and the State Council on Perfecting the Management of State-owned Financial Capital yesterday.

State-owned financial institutions should be encouraged to develop new products and businesses around the needs of the real economy, the report said.

China has revamped its SOEs in the past three years with deleveraging campaigns, by cutting overcapacity, and introducing more private ownership. The country will continue its reform with focus by boosting competitiveness and quality of management, Xiao Yaqing, chairman of the State-owned Assets Supervision and Administration Commission said last September.

The proportion of state-owned financial capital in sectors such as banking, insurance, and securities should be rationally adjusted, the Guiding Opinions report added. This excludes the fields of policy-making, national security and other key areas for the country's development.

A positive incentive mechanism for appointed leaders of state-owned financial institutions should be set up to reasonably determine their base annual wages, performance salary, and tenure incentives, the report suggested.

Editor: Emmi Laine 

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Keywords: Financial Institution , State-Owned Shares , Employee Stock Ownership Plan , SOEs , Reform , Market-Based Salaries