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Current Affairs

More Chinese banks claw back bonuses, cut salaries despite mixed profit recovery

Several major Chinese banks have clawed back staff bonuses or cut salaries amid a sluggish economic recovery and Beijing’s ongoing scrutiny of the financial sector.
In…

By Samantha Johnson / April 9, 2026

Several major Chinese banks have clawed back staff bonuses or cut salaries amid a sluggish economic recovery and Beijing’s ongoing scrutiny of the financial sector.

In their annual reports, an increasing number of lenders, ranging from state-owned institutions to commercial banks, are disclosing the amount of performance-based compensation reclaimed from their employees last year.

State-owned Bank of China recovered 47.18 million yuan (US$6.9 million) from 4,630 individuals in 2025, according to its latest annual report. In 2024, it clawed back 32.5 million yuan from nearly 2,500 staff.

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China Bohai Bank, a Tianjin-based commercial lender, clawed back 19.58 million yuan in bonuses from 816 individuals last year, while Henan’s Zhongyuan Bank reported that it recovered 13.57 million yuan, without revealing the number of employees affected.

Several other banks, including China Construction Bank and Huaxia Bank, have made similar disclosures.

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The measures follow Beijing’s years-long “common prosperity” drive to reduce wealth disparity and curb extravagance in the finance industry as China faces persistent economic headwinds.
Low net interest margins at Chinese banks, primarily driven by the prolonged property slump, have added to the pressure. Many major banks posted weak profits last year, though some have reported a slight improvement in non-performing loan ratios.

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