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BEIJING, April 9 (Xinhua) -- The Ministry of Finance has imposed a pay cap for top executives at state-owned financial institutions as the financial crisis eroded earnings of such companies in 2008, the ministry said Thursday in a circular on its website. The new rule, which came out amid rising public grumbles about huge pay packages for top executives at state-owned financial companies, outlined the basic line that pay for executives in 2008should be no more than 90 percent of the level in 2007. As of 9 p.m., two hours and half after the news was posted on the web Sina.com.cn, 584 netizens made comments. Nearly all of them were supportive of the move. The undated photo shows the gate of headquaters of the Ministry of Finance in Beijing. Total executive pay for 2008 at financial institutions - which many are still computing - must not surpass 90 percent of the 2007 levels, the Ministry of Finance (MOF) announced yesterday Under the plan, pay refers to pre-tax income, including salary, bonus, and social insurance. The rule would enhance equal income distribution and push forward reform in pay mechanism, according to the ministry. The circular said it was in line with the current domestic and international situation for executives at some state-owned financial institutions to voluntarily cut their pay despite their companies posted rising profits. Companies which had a declining income last year should slash another 10 percent based on the basic line. Reductions should be deeper if companies suffered steep drop in profits, according to the circular. The ministry demanded to narrow pay gap among executives at companies in the financial sector, calling for bigger cuts for those who received much higher pay than the average in 2007. Caps were also urged to be imposed on pay for staff at financial companies to make a clear difference in posts and performance. It is the second time that MOF had set such pay limits. In an earlier circular in February this year, MOF ordered that the 2008 salary for top executives of state-owned financial institutions should be limited within 2.8 million yuan (about 410,000 U.S. dollars). The new move aimed at avoiding salary competition between some financial institutions when deciding the salaries for their executives in 2008, said Guo Tianyong, a professor at the China Central Finance University. It is necessary to put a cap on executive salaries to prevent unfair distribution of income and a larger gap between the rich and poor, he said. In March, the government ordered a crackdown on government "hospitality" budgets, including a 15-per-cent cut in car-buying and fuel funds as well as an across-the-board halt to the building of any new office compounds before the end of 2010. Chinese Premier Wen Jiabao said the government should take the leading role in promoting frugality and should ensure government spending goes where it is most needed amid the economic crisis.
BEIJING, Feb. 4 (Xinhua) -- The Office of State Flood Control and Drought Relief Headquarters launched an orange alert on Wednesday, urging local authority to be fully aware of the grim situation and give drought-relief work top priority. The unprecedented drought which started last November, has affected 146 million mu (9.73 million hectares) of crops nationwide by February 4, among which 42.19 million mu are severely affected, according to the latest figure released by the headquarter office. About 139 million of wheat land in the eight wheat-producing provinces were threatened, comprising 46 percent of the total wheat croplands in the areas. People irrigate the wheat field at Xindian Village in Luoyang, a city in central China's Henan Province, Jan. 4, 2009. Drought has hit most of Henan Province, one of China's key wheat producing regions, due to lack of rainfall since last October.Some 3.98 million people and 1.95 million livestock are short of drinking water. The headquarter office asked local governments to be accountable for relief work and make every effort to expand irrigation areas. The local authority should enact integrated plans on water distribution to minimize the risk of the drought, according to an emergency notice by the headquarter office. Four more working teams were sent to the drought-hit areas on Monday to supervise the relief work. The Ministry of Finance is expected to arrange more funds, after the previous 100 million yuan (14.6 million U.S. dollars) to support the relief effort.

MOSCOW, March 30 (Xinhua) -- Russia and China "have similar positions" on the reform of the international financial system, Russian presidential aide Arkady Dvorkovich said Monday. Both Russia and China have voiced support for the notion of a "supra-national reserve currency," and the two countries have held discussion over the issue, Dvorkovich told reporters at a briefing. "Indeed, we have similar positions," Dvorkovich said, adding the G20 London summit may initiate broad consultation over the issue. The applicability of a supra-national reserve currency in the international balance and trade can be taken into consideration in the short term, said Dvorkovich, who added there is yet no serious discussion about using the currency in the cash flow. The presidential aide also said Russian Ruble and Chinese Yuan should be included in the basket of the IMF's Special Drawing Rights (SDRs). When speaking of the upcoming meeting between Chinese President Hu Jintao and his Russian counterpart Dmitry Medvedev on the sidelines of the London summit, Dvorkovich noted it revealed the significance of bilateral ties for both countries. Sharing a profound prospect for further cooperation, Russia and China have huge potentials for cooperation in the fields like energy, industry, service and cultural exchanges, he added. Dvorkovich told Xinhua that having great potential for cooperation, BRIC (Brazil, Russia, India and China) share "similar interests" on the assurance of the world's stable economic growth and the reconstructure of the international financial supervision system. BRIC will continue to play a bigger role in the future global economic and financial system, he said. Yet the four countries will not issue a joint statement alone at the G20 summit, since only one comprehensive statement, indicating all parties' agreed stance, will be passed at the summit, he added.
MEDELLIN, Colombia, March 29 (Xinhua) -- China's membership in the Inter-American Development Bank (IDB) will broaden cooperation between China and Latin America, China's central bank governor Zhou Xiaochuan said here Saturday. Closer bilateral cooperation will enhance their ability to jointly tackle the ongoing financial crisis, Zhou told an IDB meeting in Medellin. Chinese Central Bank Governor Zhou Xiaochuan attends the Inter-American Development Bank (IDB) meeting in Medellin, Colombia, March 28, 2009. Zhou on Saturday urged for international financial reforms in the face of the global economic downturn. He added that China, as a new member, is willing to share development experience and enhance trade relations with Latin America. South-South cooperation is all the more important amid the current financial crisis, and China will expand its trade with and increase its investment in Latin American countries after it joined the IDB, he said. Two-way trade between China and Latin America has grown at an average annual rate of 40 percent in recent years, hitting a record high of 143.3 billion U.S. dollars in 2008. China joined the IDB as its 48th member country in January this year. Zhou is here for the 50th annual meeting of the IDB, scheduled for March 27-31 in the Colombian city of Medellin. The IDB group, founded in 1959 and headquartered in Washington D.C., is the oldest and largest regional inter-governmental development financial institution. It is aimed to promote economic and social development in Latin America and the Caribbean.
BEIJING, Feb. 3 (Xinhua) -- Chinese Vice President Xi Jinping has stressed on Tuesday the importance of studying and applying the Scientific Outlook on Development in the work of government organizations at all levels during the economic downturn. Xi, a member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, made the remarks here at a meeting on studying and applying the Scientific Outlook on Development. Xi urged government officials at all levels to summarize their working experiences, improve ruling sufficiency and correct mistakes. He said any concepts that were not compatible with or went against the Scientific Outlook on Development should be changed. He also urged that problems related to government officials' credibility and capability be solved to ensure that officials should be educated, scientific development sped up and people's demands met.
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