Hong Kong media “Sing Tao Daily” reported on December 29 that before 2023 is over, local governments under the Communist Party of China have already started a wave of salary cuts. News of salary cuts for civil servants are frequently reported in many provinces and cities in Beijing, Hubei, the Yangtze River Delta, and the Pearl River Delta.
A civil servant in a Beijing municipal government agency said that this year they have received a “disguised” salary cut of 10%. “Although the basic salary has not changed and the subsidies have been reduced, the above stated that the benefits previously provided were ‘unreasonable’.”
An article on the WeChat public account “One Minute a Day” stated that a township civil servant in Xiantao, Hubei Province who joined in 2018 received a salary of 50,000 yuan (RMB, the same below) for the whole year, which was not high to begin with. This month, his salary was reduced by 280 yuan. At the same time, the performance bonus of more than 10,000 yuan at the end of the year will be halved, which means that the salary will be reduced by about 15% a year.
The benefits of civil servants in Guangdong after the salary cut have been circulated on social media recently. The annual salary in Shenzhen has been reduced from more than 360,000 yuan to more than 250,000 yuan, and the annual salary in Zhuhai has been reduced from 280,000 yuan to about 200,000 yuan. After the salary reduction, Guangdong Province directly ( agencies) more than 220,000 yuan, Foshan and Dongguan 200,000 yuan, Zhongshan 150,000 to 200,000 yuan, Huizhou and Jiangmen 140,000 yuan.
There are reports from many places that civil servants are adjusting their salary structure and cutting their salaries in a “disguised” manner. Some Xiaohongshu netizens said that Shandong Province has issued a document to “take out basic performance (bonuses), but if you have money, you can pay it.” “We also said in the office that if there are no performance bonuses, then there will be no assessment. , I am very busy with assessment matters every day.”
According to reports, the wave of salary cuts for civil servants is likely to continue to spread next year. The National Financial Work Conference of the Communist Party of China was held in Beijing from December 21st to 22nd, and it was proposed that next year we should pay close attention to financial management reform, and “living a tight life” has become a key word. A “Notice on Strengthening Budget Management and Adhering to Tight Living” issued by the Xiamen City Government in Fujian Province has been widely circulated on the Internet, requiring that illegal construction of buildings and halls, performance projects, and image projects be strictly prohibited.
This year is an economic winter, but for the public sector, the winter has just begun, and next year will definitely be colder than this year. Everyone is out of money, and the Chinese Communist Party and government departments are emphasizing “tight times”. The wave of salary cuts for civil servants everywhere will definitely continue next year.
Some analysts believe that according to the official data of the Communist Party of China, there are more than 40 million public employees, including public institutions. They are the “middle class” from third- and fourth-tier cities to county towns. The decline in their income will seriously weaken the consumption power of these places and the local business ecology. The chain will collapse, related businesses will have a harder time, and the transmission will spread like ripples.
The “working emperor” of the real estate company has an annual salary of 100 million and a monthly salary of 10,000
“Times Weekly” reported on December 28 that Country Garden recently announced that executive directors Yang Huiyan, Mo Bin, Yang Ziying and non-executive director Chen Chong will receive annual salaries as directors from 370,000 yuan, 3 million yuan, 2 million yuan and 37,000 yuan respectively. Ten thousand yuan is adjusted uniformly to 120,000 yuan, which is a monthly salary of 10,000 yuan.
In the past, China’s real estate industry has always been a hugely profitable industry, and real estate company executives have even given birth to “employee emperors” with annual salaries of over 100 million. In 2020, two executives in the real estate industry received salaries of over 100 million yuan, namely Mo Bin, President of Country Garden, with an annual salary of 133 million yuan; Xia Haijun, former executive director and CEO of China Evergrande, with an annual salary of 204 million yuan.
In 2017, Liu Senfeng, then Jiangsu regional president, was one of Country Garden’s six regional presidents with an annual salary of over 100 million.
However, as the industry enters a period of adjustment, the sales scale of commercial housing has declined after peaking in 2021, and the sales myth of “selling 100 million a day” has come to an end. The “working emperor” in the real estate industry is no longer as glorious as it used to be. The old co-investment craze has gradually faded away, and has even become a heavy burden for real estate developers.
According to Wind statistics, among the 88 real estate development companies listed on the A-share market in 2022, the average annual salary of the chairman is approximately 1.436 million yuan, a decrease of 17.5% from 1.746 million yuan in 2021; the average annual total salary of the management is approximately 13.200 million yuan. , a decrease of 19.1% from 16.309 million yuan in 2021.
If we focus on leading companies and extend the timeline, the annual salary drop for senior executives will be even more obvious. Among Wind real estate development companies, the average annual salary of the top 20 chairmen in 2022 is approximately 3.863 million yuan, a decrease of 23.8% from 5.069 million yuan in 2020.
It is worth mentioning that among A-share listed real estate companies, there are 4 chairmen with annual salaries exceeding 5 million yuan in 2022, including Chen Jinshi, chairman of Zhongnan Construction, Li Guangning, chairman of Huafa Co., Ltd., Liu Ping, chairman of Poly Development, and former director of China Merchants Shekou Long Xu Yongjun. For comparison, there are 9 people in both 2021 and 2020.
Mingyuan Real Estate Research Institute believes that although favorable policies for the property market have continued since 2023, it is still unknown whether the market enthusiasm and growth momentum can be continued this year. This also means that if the real estate market goes down again and the business scale of real estate companies cannot increase rapidly, a new round of salary system adjustments will continue.
This year, the downward trend in real estate sales continues.
According to data from the National Bureau of Statistics of the Communist Party of China, from January to November this year, the sales area of commercial housing nationwide was 10.05 trillion square meters, a year-on-year decrease of 8.0%; the sales amount of commercial housing was 10.53 trillion yuan, a decrease of 5.2%.
Kerui believes that in the short term, the real estate industry will not experience a V-shaped reversal after previous policy stimulus. Bottoming, low fluctuations, and pulse-type adjustments are the main themes. In 2024, commercial housing sales will maintain a pattern of shock and recovery, and it is expected that the annual area and value will decrease by about 5%.
Kerui further said that at present, “the real estate market is in the process of transformation and adjustment, and the industry will still operate at the bottom for some time.”
Li Yujia, chief researcher of the Housing Policy Research Center of the Guangdong Provincial Institute of Urban Planning, believes that real estate in 2024 is still in the second half, that is, the risk release process, or the “year of clearing out.”
The market will continue to consolidate at a low level, and salary cuts for real estate company executives will become a trend.
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2023-12-29 20:55:53
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