The report is published every three years and compares prices of goods and services, incomes, income taxes, working hours and vacation days for 14 different occupations in 73 cities around the world.

In Asia, Chinese managers on average earned 2.5 times more than their Indian equivalents. Managers in Beijing and Shanghai are now demanding salaries equivalent of up to two-thirds of salaries paid in Hong Kong and Singapore.

Predictably Hong Kong, Singapore, Seoul, Taipei and Tokyo had the highest salaries but Beijing and Shanghai were next on the list despite lower costs of living. The lowest regional wages are still to be found in India for managerial positions, a surprising fact given the English language standards, general competency and experience in dealing with international businesses.

While Beijing and Shanghai count among the most expensive cities in mainland China, the same is also true of its regional counterparts. Wages in second tier cities like Suzhou, China and Pune, India both close to top tier cities Shanghai, China and Mumbai, India still demonstrates a disparity. The same goes for Tianjin, China and Gurgoan, India which are comparable regions for manufacturing that are close to Beijing, China and New Delhi, India.

The report raises questions of the sustainability of cheap manufacturing processes in China and comes at a time when the country is shifting its economic model away from export-driven manufacturing to domestic consumption.

China now appears to have an increasingly demanding salary base and an aging population. Multinational corporations are sure to take this into consideration when assessing future investments in Asia.

The full UBS Price & Earnings Report can be downloaded from: http://www.ubs.com/1/e/wealthmanagement/wealth_management_research/prices_earnings.html