Beijing Demands That Wall Street Executives Maintain the CCP’s Common Prosperity “Policy”

The China Securities Regulatory Commission (CSRC) called a meeting with Wall Street investment banks and asked them to align themselves with President Xi Jinping’s policy of “Common Prosperity.”

Global media outlets on Monday, June 13th, citing information from insiders, revealed that the CSRC has organized several public meetings in Beijing this year. The goal of the meetings is to limit executive salaries in Chinese and foreign financial institutions , such as China International Capital Corporation, CITI Group, Goldman Sachs, and UBS.

People familiar with the matter said Chinese regulators warned bankers not to give executives excessive salaries at meetings in Shanghai and Beijing this year, otherwise they may risk violating relevant regulations of the Chinese Communist Party (CCP).

The CSRC advised executives present to keep the salaries they receive consistent with the “spirit” of the “Common Prosperity” policy. Some news agencies have commented that it signals foreign financial institutions are being put in the same position as their Chinese counterparts under the CCP.

Michael Pettis, a professor of finance at Peking University’s Guanghua School of Management, cautioned if Beijing insists on flattening the salaries of Chinese and foreign financiers, it will only worsen the division between Communist China and the global financial system.