KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
China Merchants Fund Management (China Merchants FM), a top 10 Chinese fund manager, has requested its senior executives to repay any salary received over the past five years that exceeds a newly imposed cap of three million yuan (US$421,330 or RM1.8 million) per year. This move aligns with a government initiative aimed at promoting economic equality under China's "common prosperity" campaign.
Key Highlights:
Salary Repayment Initiative: China Merchants FM, wholly owned by China Merchants Group (CMG), has asked about 60 senior executives and portfolio managers to return the excess pay from 2019 to 2023 to comply with the new salary cap. This measure follows similar steps taken by other state-owned enterprises to align with the government's push for reducing income inequality.
Focus on Economic Equality: The "common prosperity" campaign, launched in 2021, targets social and income disparities amid slowing economic growth. The campaign discourages extravagant lifestyles, particularly among financial sector elites, whose compensation has been scrutinized for being high despite poor stock market performance.
Claw-back Actions and Wider Scrutiny: Besides China Merchants FM, other fund managers, including CMG affiliate Bosera Asset Management, have also capped pay and initiated claw-back measures. At least two other fund managers have introduced a similar five-year claw-back for excess salaries, primarily targeting senior management. Additionally, auditors from the National Audit Office have reviewed salaries at China Merchants FM and other fund managers, pushing for pay caps and recovery of excess compensation.
China Merchants FM's actions illustrate the broader trend of state-owned companies adhering to government directives to promote economic equality, reflecting China's growing emphasis on curbing financial sector excesses.
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