Two leading Chinese fund managers, under a new government austerity drive, have implemented income caps for staff, with mandates to return any earnings exceeding set limits, according to insiders. China Merchants Fund Management (China Merchants FM) has set a salary cap of CNY3m, effective this year, and is reclaiming excess pay from the previous year. Concurrently, the retirement mutual fund sector faces setbacks, with several funds closing due to inadequate investor interest, undermining efforts to support China’s ageing population. This year, notable closures include funds managed by Prudential’s and Invesco’s local ventures, significantly impacting the struggling private pension market valued at approximately USD1.7tr.