Hong Kong-listed China Construction Bank said Monday its board had approved a plan to let its 300,000-strong employees become share holders in an aggressive incentive plan to help improve operations.

 

The bank said in a report the CCB would set up a special fund to buy shares for its employees, which would combine to account for one to two percent -- with a market value likely to reach 15.6 billion yuan (US$1.95 billion) -- of the bank's total equities.

 

The move is part of the efforts made by the CCB to learn from more sophisticated foreign banks in building corporate governance and upgrading business. It is awaiting governmental approval.

 

The CCB is one of China's "big four" State-controlled banks. China must fully open its financial market to foreign banks at the end of the year under a commitment to the World Trade Organization.

 

The report said the CCB plans to raise employees' salaries by 30 percent this year, saying its per capita salary now stands at only 88,000 yuan, with its chairman, Guo Shuqing, earning 800,000 yuan a year, far less than workers or bosses of big foreign banks.

 

(Xinhua News Agency August 29, 2006)