China Is Said to Defer Bond Trader Pay Above $154,000 a Year
- Deferred compensation to be handed out over at least two years
- Move comes amid broader campaign to reduce leverage in bonds
Photographer: Johannes Eisele/AFP via Getty Images
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China capped how much bond traders at brokerages and fund companies can earn from a year’s work to 1 million yuan ($154,000), people with knowledge of the matter said, as regulators step up a campaign to control risk-taking across financial markets.
Payouts above that threshold can be paid in part the following year, but must be spread out over at least two years, according to the people, who asked not to be named because they are not authorized to talk publicly about the matter. The deferrals mean individuals could receive an annual total of more than 1 million yuan in future years. It isn’t clear what would happen if a trader were to leave before receiving their full payout.