Several Chinese securities firms are in the process of re-expansion, ramping up recruitment and raising pays, in response to the growing demand in the initial public offering market in China and Hong Kong, Bloomberg reported, citing sources familiar with this matter.
Chinese large brokerages such as CITIC Securities (6030) and Huatai Securities (6886) have recently recruited dozens of junior and mid-level investment banking practitioners, mainly focusing on executive positions rather than senior business development personnel, the report said.
This indicates that these companies need to quickly rebuild their business capabilities while also controlling costs, according to Bloomberg.
Besides, some of the large brokerages have adjusted the basic salary of junior bankers to levels close to the level before the crackdown. But the bonus pool is still closely linked to the completion of the project and the attitude of regulators towards the industry, said Bloomberg.
This move marks a significant turning point for Chinese securities firms, the report said. In the past few years, the brokerage industry has had to cut salaries and bonuses due to the slowdown in transactions and anti-corruption actions.
