China salary spiral fears over-stated: HK4As chief

<p>Hong Kong 4As chairman Jeffrey Yu believes that salary increases in </p><p>China will not likely be as high as initially feared. </p><p><BR><BR> </p><p>Figures provided by TMP Worldwide eResourcing and Watson Wyatt indicated </p><p>that locals and senior expatriates were likely to get a double-digit pay </p><p>increase this year (See MEDIA, Feb 2). </p><p><BR><BR> </p><p>However, Mr Yu said that agencies should be cautious about their </p><p>prospects because of a host of economic uncertainties. </p><p><BR><BR> </p><p>"Has the Asian economy fully recovered? Where's the US economy going? At </p><p>this moment, it is difficult to answer those questions so we have to </p><p>take a cautious stance," he said. </p><p><BR><BR> </p><p>He added the recommendations of the 4As was that any salary increase for </p><p>expats in China be capped at five per cent and 10 per cent for locals, </p><p>with an across-the-board five per cent limit in Hong Kong. </p><p><BR><BR> </p><p>However, he conceded that many expats were on incentive schemes in which </p><p>"the more successful you are, the more bonus you get". </p><p><BR><BR> </p>