Anthropic’s Claude Mythos Preview showed advanced ability to find and exploit vulnerabilities across computer systems. This is raising fears of AI-driven cyberattacks and financial instability. The US government has issued warnings to banking and financial industry leaders. Here is why it matters

Anthropic’s Claude Mythos Preview showed advanced ability to find and exploit bugs across computer systems. This is raising fears of AI-driven cyberattacks and financial instability. The US government has issued warnings to banking and financial industry leaders. Here is why it matters

Why Anthropic’s Claude Mythos is scaring financial sector and US officials: This AI model can end cybersecurity, if in wrong hands

Executives, who have been working in state-owned financial institutions of China, said that they are bracing for “one of the toughest years” they have seen, as Beijing plans to tighten its grip on the sector. 
 
This means that pay cuts and long hours of compulsory ideological training will become a norm in the sector. Since the sector's overhaul was announced in March, the morale has plummeted as stated by four executives who are working at state financial institutions. 
 
The plan, which was initiated by President Xi Jinping, is aimed at fighting corruption in the sector and ensuring that it is under the ruling Communist Party's direct control.

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/chinas-manufacturing-sector-continues-to-contract-heightening-growth-concerns-610401">China's manufacturing sector continues to contract, heightening growth concerns</a>

The executives stated that the campaign is now their companies' top priority and was expected to run well into autumn. The executives emphasised the uncertainty brought by the “relentless” ideological and anti-corruption drives, sharp pay cuts in their basic salaries, which range from 15 to 20 per cent and slashing of annual bonuses by at least 30 per cent this year.

<h2 lang="en-US">Ideological study session</h2>

A state-owned securities firm's manager in Shanghai stated that his company held a recent ideological study session which was based on the Red Army’s Long March. 
 
“Probably our party secretary wants us to be mentally prepared for tougher times ahead,” he stated. “State-owned financial companies aren’t an exception. They’re also part of China’s austerity drive at a time when the economy isn’t doing well, and as many civil servants get their pay cut too,” he added. 
 
He stated that the financial sector's pay cuts were in accordance with Xi’s “common prosperity” goal to bridge&nbsp;the wealth gap in China. Beijing has promised to end extravagance among “financial elites” in the country's state sector, as Xi makes efforts to make its institutions more compliant with his vision.

WATCH |&nbsp;China: Unauthorised acquisition of data to be termed a 'spying offence'

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As tensions rise between China and the West, the United States in particular, Beijing is appealing to its state banks to allocate more funds in areas which are identified as priorities for the country, such as technology self-reliance projects and advanced manufacturing. 
 
The bankers and financial regulators are also being closely watched by Beijing for any sign of collusion with any foreign financial institutions to facilitate large outflows of Chinese funds. 
 
China has also been concerned about increasing local government debt and wishes lenders to exercise caution on loans, and at the same time is observing the weaker financial institutions amid a banking crisis in the United States.

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Executives, who have been working in state-owned financial institutions of China, said that they are bracing for “one of the toughest years” they have seen, as Beijing plans to tighten its grip on the sector.

Executives, who have been working in state-owned financial institutions of China, said that they are bracing for “one of the toughest years” they have seen, as Beijing plans to tighten its grip on the sector. This means that pay cuts and long hours of compulsory ideological training will become a norm in the sector. Since the sector's overhaul was announced in March, the morale has plummeted as stated by four executives who are working at state financial institutions. The plan, which was initiated by President Xi Jinping, is aimed at fighting corruption in the sector and ensuring that it is under the ruling Communist Party's direct control. ALSO READ | China's manufacturing sector continues to contract, heightening growth concerns The executives stated that the campaign is now their companies' top priority and was expected to run well into autumn. The executives emphasised the uncertainty brought by the “relentless” ideological and anti-corruption drives, sharp pay cuts in their basic salaries, which range from 15 to 20 per cent and slashing of annual bonuses by at least 30 per cent this year. Ideological study session A state-owned securities firm's manager in Shanghai stated that his company held a recent ideological study session which was based on the Red Army’s Long March. “Probably our party secretary wants us to be mentally prepared for tougher times ahead,” he stated. “State-owned financial companies aren’t an exception. They’re also part of China’s austerity drive at a time when the economy isn’t doing well, and as many civil servants get their pay cut too,” he added. He stated that the financial sector's pay cuts were in accordance with Xi’s “common prosperity” goal to bridge the wealth gap in China. Beijing has promised to end extravagance among “financial elites” in the country's state sector, as Xi makes efforts to make its institutions more compliant with his vision. WATCH | China: Unauthorised acquisition of data to be termed a 'spying offence' As tensions rise between China and the West, the United States in particular, Beijing is appealing to its state banks to allocate more funds in areas which are identified as priorities for the country, such as technology self-reliance projects and advanced manufacturing. The bankers and financial regulators are also being closely watched by Beijing for any sign of collusion with any foreign financial institutions to facilitate large outflows of Chinese funds. China has also been concerned about increasing local government debt and wishes lenders to exercise caution on loans, and at the same time is observing the weaker financial institutions amid a banking crisis in the United States. You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE

China’s state-owned financial sector prepares for ‘one of the toughest years’

Chinese financial firms are undertaking a significant austerity drive as the government seeks to address income inequality and combat corruption within the sector, Reuters reported.

With China's economy facing a slowdown and public discontent growing, authorities have launched initiatives to rein in excessive wealth and lavish lifestyles. These measures include salary cuts, bonus reductions, and guidelines against ostentatious displays of affluence. Both state-owned and private-sector financial firms are taking proactive steps to align themselves with the government's agenda while also aiming to avoid regulatory scrutiny and public backlash.

Implementing Modesty

Employees at a leading Chinese state-owned mutual fund and a mid-sized bank have received directives to abstain from showcasing high-end lifestyles to ensure a more modest representation. This includes refraining from wearing luxury brands or carrying upscale bags at work. In addition, staff members have been cautioned against posting pictures of expensive meals, clothing, or accessories on social media platforms, aiming to avoid attracting regulatory attention and public criticism.

Cracking Down on Excessive Pursuits

China's top anti-corruption watchdog has vowed to eliminate the concept of a Western-style 'financial elite' and curb the indulgent pursuit of 'high-end taste'. Consequently, financial institutions are taking measures to shed their opulent image and align with President Xi Jinping's 'common prosperity' drive, which seeks to bridge the wealth gap and promote societal equality. The initiatives implemented by these firms signal their willingness to prioritize the public's concerns and the government's agenda.

Salary and Bonus Reductions

Leading financial entities, such as CITIC Securities and China International Capital Corp (CICC), are implementing austerity measures by cutting pay and bonuses. CITIC Securities has reduced base salaries in its investment banking division by up to 15 per cent, a notable step in addressing income disparity. Similarly, CICC has decreased this year's bonuses for investment bankers by 30 per cent to 50 per cent compared to the previous year.&nbsp;

Ideological Alignment and Addressing Inequality

Beyond the measures to combat corruption and promote 'common prosperity,' financial firms are also curbing the extravagant lifestyles of their employees to ensure compliance with the Communist Party's principles. Beijing is further strengthening the party's ideological and political role within the financial system by establishing a new financial watchdog. This move is part of a larger reorganization of government bodies during President Xi Jinping's third term. The central bank and securities regulator has also reduced budget allocations for employee salaries as part of broader efforts to reduce income disparity.

Reuters cited Xin Sun, a Chinese and East Asian business professor at King's College London, who highlighted the political significance of the current austerity push. 'Inequality in China has reached a high level for a long time,' says Sun, adding that the distribution of resources and benefits within the regime is a critical political priority for the Communist Party. By cutting back on the benefits of the 'financial elites,' the party aims to address inequality within its ranks to ensure political stability.

(With Inputs From Reuters)

Chinese financial firms are undertaking a significant austerity drive as the government seeks to address income inequality and combat corruption within the sector, Reuters reported.

Chinese financial firms are undertaking a significant austerity drive as the government seeks to address income inequality and combat corruption within the sector, Reuters reported. With China's economy facing a slowdown and public discontent growing, authorities have launched initiatives to rein in excessive wealth and lavish lifestyles. These measures include salary cuts, bonus reductions, and guidelines against ostentatious displays of affluence. Both state-owned and private-sector financial firms are taking proactive steps to align themselves with the government's agenda while also aiming to avoid regulatory scrutiny and public backlash. Implementing Modesty Employees at a leading Chinese state-owned mutual fund and a mid-sized bank have received directives to abstain from showcasing high-end lifestyles to ensure a more modest representation. This includes refraining from wearing luxury brands or carrying upscale bags at work. In addition, staff members have been cautioned against posting pictures of expensive meals, clothing, or accessories on social media platforms, aiming to avoid attracting regulatory attention and public criticism. Cracking Down on Excessive Pursuits China's top anti-corruption watchdog has vowed to eliminate the concept of a Western-style 'financial elite' and curb the indulgent pursuit of 'high-end taste'. Consequently, financial institutions are taking measures to shed their opulent image and align with President Xi Jinping's 'common prosperity' drive, which seeks to bridge the wealth gap and promote societal equality. The initiatives implemented by these firms signal their willingness to prioritize the public's concerns and the government's agenda. Salary and Bonus Reductions Leading financial entities, such as CITIC Securities and China International Capital Corp (CICC), are implementing austerity measures by cutting pay and bonuses. CITIC Securities has reduced base salaries in its investment banking division by up to 15 per cent, a notable step in addressing income disparity. Similarly, CICC has decreased this year's bonuses for investment bankers by 30 per cent to 50 per cent compared to the previous year. Ideological Alignment and Addressing Inequality Beyond the measures to combat corruption and promote 'common prosperity,' financial firms are also curbing the extravagant lifestyles of their employees to ensure compliance with the Communist Party's principles. Beijing is further strengthening the party's ideological and political role within the financial system by establishing a new financial watchdog. This move is part of a larger reorganization of government bodies during President Xi Jinping's third term. The central bank and securities regulator has also reduced budget allocations for employee salaries as part of broader efforts to reduce income disparity. Reuters cited Xin Sun, a Chinese and East Asian business professor at King's College London, who highlighted the political significance of the current austerity push. 'Inequality in China has reached a high level for a long time,' says Sun, adding that the distribution of resources and benefits within the regime is a critical political priority for the Communist Party. By cutting back on the benefits of the 'financial elites,' the party aims to address inequality within its ranks to ensure political stability. (With Inputs From Reuters)

New era of accountability: China’s financial sector adopts austerity measures

Fan Yifei, one of the six deputy governors of China's central bank, is under an investigation by top anti-corruption watchdog Central Commission for Discipline Inspection (CCDI).&nbsp;The anti-corruption watchdog said on Saturday that it is investigating Yifei&nbsp;over "suspected serious violations of discipline and law".&nbsp;Fan, 58, has been the deputy governor since the beginning of 2015. The official prior to that has held several top positions at the China Investment Corporation and the China Construction Bank, Reuters reported.

<a href="https://www.wionews.com/world/g7-clear-eyed-about-need-to-align-on-china-says-blinken-after-foreign-ministers-meet-531375">Also read |&nbsp;'G7, clear-eyed about need to align on China,' says Blinken after foreign minister's meet</a> 
 
In recent years, Chinese President Xi Jinping intensified efforts to purge corrupt Communist Party members from the financial sector.&nbsp; 
 
Fan is also the latest among a number of top finance officials detained in the past two years under a sweeping anti-corruption campaign targeting the sector. He&nbsp;was CBC vice-governor for five years before being appointed deputy manager of China Investment Corporation, a sovereign wealth fund that manages part of the country’s foreign exchange reserves.

The probe was announced in a statement by the Central Commission for Discipline Inspection (CCDI). Currently, not much information has been revealed.&nbsp;

<a href="https://www.wionews.com/world/german-chancellor-calls-on-china-to-use-influence-on-russia-531164">Also read |&nbsp;German Chancellor Olaf Scholz asks China to use its 'influence' on Russia for ending Ukraine war</a>

The commission had earlier this year in May said that it was looking into possible violations by Sun Guofeng, the former head of the monetary policy division of the central bank.&nbsp; 
 
The anti-graft agency in February concluded the inspection of 25 financial institutions such as the central bank and more.&nbsp;

The president has always shown disregard for corruption among officials.&nbsp;

(With inputs from agencies)

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Fan Yifei, one of the six deputy governors of China's central bank, is under an investigation by top anti-corruption watchdog Central Commission for Discipline Inspection (CCDI).

Fan Yifei, one of the six deputy governors of China's central bank, is under an investigation by top anti-corruption watchdog Central Commission for Discipline Inspection (CCDI). The anti-corruption watchdog said on Saturday that it is investigating Yifei over "suspected serious violations of discipline and law". Fan, 58, has been the deputy governor since the beginning of 2015. The official prior to that has held several top positions at the China Investment Corporation and the China Construction Bank, Reuters reported. Also read | 'G7, clear-eyed about need to align on China,' says Blinken after foreign minister's meet In recent years, Chinese President Xi Jinping intensified efforts to purge corrupt Communist Party members from the financial sector. Fan is also the latest among a number of top finance officials detained in the past two years under a sweeping anti-corruption campaign targeting the sector. He was CBC vice-governor for five years before being appointed deputy manager of China Investment Corporation, a sovereign wealth fund that manages part of the country’s foreign exchange reserves. The probe was announced in a statement by the Central Commission for Discipline Inspection (CCDI). Currently, not much information has been revealed. Also read | German Chancellor Olaf Scholz asks China to use its 'influence' on Russia for ending Ukraine war The commission had earlier this year in May said that it was looking into possible violations by Sun Guofeng, the former head of the monetary policy division of the central bank. The anti-graft agency in February concluded the inspection of 25 financial institutions such as the central bank and more. The president has always shown disregard for corruption among officials. (With inputs from agencies) WATCH WION LIVE HERE

China's central bank deputy governor Fan Yifei under corruption probe

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Vice Chairman of NITI Aayog Rajiv Kumar has termed the ongoing situation in financial sector as unprecedented and called for extraordinary steps to tackle it.

"This is an unprecedented situation for the government. In the last 70 years, we have not faced this sort of liquidity situation where the entire financial sector is in a churn, and nobody is trusting anybody else," Kumar said.

"Within the private sector, nobody wants to lend to anybody else. Everyone is sitting on cash," he said while speaking on Thursday at the Mindmine Summit 2019, the flagship event of the Hero Group.

Kumar said the government must do whatever it can to remove apprehensions of the private sector.

"The whole nature of the game has changed in the past four years after demonetisation, GST and IBC. In the earlier period, you had 10, 20, 30, 35 per cent of cash sloshing around which used to help people. That has become much less now," he said.&nbsp;
</div>

Vice Chairman of NITI Aayog Rajiv Kumar has termed the ongoing situation in financial sector as unprecedented and called for extraordinary steps to tackle it. "This is an unprecedented situation for the government.

Vice Chairman of NITI Aayog Rajiv Kumar has termed the ongoing situation in financial sector as unprecedented and called for extraordinary steps to tackle it. "This is an unprecedented situation for the government. In the last 70 years, we have not faced this sort of liquidity situation where the entire financial sector is in a churn, and nobody is trusting anybody else," Kumar said. "Within the private sector, nobody wants to lend to anybody else. Everyone is sitting on cash," he said while speaking on Thursday at the Mindmine Summit 2019, the flagship event of the Hero Group. Kumar said the government must do whatever it can to remove apprehensions of the private sector. "The whole nature of the game has changed in the past four years after demonetisation, GST and IBC. In the earlier period, you had 10, 20, 30, 35 per cent of cash sloshing around which used to help people. That has become much less now," he said.

NITI Aayog VC calls for 'extraordinary' steps to tackle 'unprecedented' situation in financial sector

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