From Investing.com: 2024-04-28 04:15:28

China International Capital Corp (CICC) is slashing onshore investment bankers’ base pay by up to 25% to cut costs amid volatile markets and Beijing’s austerity drive. More than 2,000 bankers will be affected by the salary cuts, following a 40% reduction in bonuses last year. IPO funds raised by Chinese firms dropped significantly in Q1.

Chinese financial firms are embracing austerity measures, cutting salaries and bonuses to bridge the wealth gap. The top anti-corruption watchdog aims to eliminate the pursuit of “high-end taste”. Amid economic slowdown, financial professionals’ flashy lifestyles have drawn criticism. CICC might also implement job cuts in its Hong Kong unit.

The bank has not disclosed 2023 bonuses yet, with potential job cuts looming in its offshore investment banking unit. IPO proceeds dropped significantly in both mainland China and Hong Kong in 2023. Profit attributable to shareholders decreased by 19% in 2023 from the previous year.



Read more at Investing.com: Exclusive-Chinese brokerage CICC cutting dealmakers’ base pay by 25%, sources say By Reuters