Equity Compensation Emerging in China

A bank, a port operator, an insurance company, and a dairy company are among the 20 firms that are issuing shares or options to their employees in China. Zheng Chunming, an analyst at Capital Securities in Shanghai, said that "We see [China] Minsheng [Bank] as a test for expanding the stock incentives to other banks." The movement began a year ago when the Chinese Communist Party include stock incentives as part of its roadmap of economic reforms. Some experts worry that, even in companies where the government holds a minority of shares, it may appoint managers and exert a degree of control over the business.