SHANGHAI, Sept 1 China's state-owned Bank of
Communications (BoCom), the country's
fifth-largest listed lender, said that the government policy to
cut pay at state-owned enterprises (SOEs) could result in a
two-tier salary system.
Niu Ximing, the bank's chairman, said that the reforms to
rein in the salaries of top executives at SOEs - approved by the
Communist party's top decision-making body on Friday - could
lead to government-appointed workers receiving state-determined
pay, while employees untethered to the government receive a
market salary in the same organisation.
Speaking at a press conference held at the Shanghai Stock
Exchange on Monday, Niu added that BoCom has not studied the new
scheme in detail but will implement the rules once it has
received orders from regulators.
The new rules approved by the Politburo come after BoCom
said it was considering management stock incentives as part of a
plan to sell stakes to private investors under government
reforms to give private capital a bigger role in the economy
BoCom also said it has no plans to issue preference shares.
"We have considered issuing preference shares, but this year
we have enough capital," Niu said.
Industrial and Commercial Bank of China, China
Construction Bank Corp and Agricultural Bank of
China - three of the country's largest five listed
banks - have announced plans to issue preference shares.
(Reporting by Engen Tham and David Lin; Editing by David