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Per capita average income of urban residents reached a record 17,440 yuan (US$2,180) in Guangdong provincial capital Guangzhou in the first six months of this year.

 

The figure represents a year-on-year increase of more than 8 percent and makes Guangzhou residents the richest on the Chinese mainland, according to statistics released by Guangzhou Municipal Bureau of Labor and Social Security yesterday.

 

If the rate is maintained residents will earn on average 34,880 year (US$4,372) this year.

 

The per capita average income of urban residents in Guangzhou reached 33,839 yuan (US$4,229.9) in 2005, 1,363 yuan (US$170.38) more than Shenzhen Special Economic Zone's 32,476 yuan (US$4,059.5).

 

Shenzhen, which borders Hong Kong Special Administrative Region, was previously the richest city on the Chinese mainland.

 

In addition to the city's sustainable economic growth, an official from Guangzhou Municipal Bureau of Labor and Social Security yesterday attributed the steady increase to the introduction of the annual salary system in many State-owned and foreign-funded companies.

 

The new system, which closely connects the incomes of managers and staff to profits, has greatly increased productivity.

 

To help attract more talent to work in the public sector, Guangzhou has also raised salaries for its many civil servants this year, spurring overall growth in incomes, said the official who refused to be named.

 

Guangzhou's gross domestic product (GDP) grew more than 13 percent year-on-year to hit 511.58 billion yuan (US$63.95 billion) in the past 12 months.

 

Those working in "hot industries" such as IT, autos, petrochemicals, steel, pharmaceuticals, light textiles and new materials are the biggest winners this year, the official told China Daily.

 

"And residents who have high education levels, special technical skills and good work experience are earning even more," said the official.

 

"Most residents are aged between 30 and 40 and have been working for 5 to 10 years," he added.

 

(China Daily August 7, 2006)