[HONG KONG] Citic Securities and other Chinese brokers are raising pay levels again for junior bankers in Hong Kong to boost retention and handle a jump in dealmaking, according to people familiar with the moves.
China’s biggest broker is raising pay at its Hong Kong CLSA unit, giving 15 per cent to 30 per cent bumps to about HK$75,000 (S$12,370) to HK$80,000 a month to select junior associates, the people said, asking not to be identified because they aren’t authorised to discuss compensation. The raises don’t apply across the board, one of the people said.
Pay is now back at 2022 levels, but still below what first- to third-year associates earned in 2021, when deal activity hit multi-decade highs, one of the people said.
China Merchants Bank’s Hong Kong arm, CMB International, has also lifted pay to similar levels for juniors, while a number of other firms are considering raises to follow suit amid rising competition for talent, according to people familiar with the matter.
The increases and planned bumps mark a stark turnaround after pay was lowered over the past few years and bonuses and perks were gutted, especially on the mainland, amid a political shift to rein in private enterprise. Bankers in particular were singled out by the ruling Communist Party as leading “hedonistic” lifestyles, leading firms to also take a cautious approach in Hong Kong.
Now dealmaking is flourishing in Hong Kong, mainly driven by the listing of mainland Chinese companies, triggering moves between brokers and demand for bankers. Stock markets are also staging a comeback on the Chinese mainland, even as the property market remains in crisis and the economy has struggled to revive.
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A Hong Kong-based spokeswoman at Citic declined to comment. CMBI wasn’t immediately able to comment.
Since late 2022, investment banks and brokerages have made multiple rounds of staff cuts as dealmaking dried up, China’s economy faltered on deflation and property woes, and Beijing tightened oversight of the private sector.
That has turned around over the past 12 months. Hong Kong saw a net increase of some 1,200 licensed financial professionals, driving the total number to almost 42,500 by the end of June, according to Securities and Futures Commission (SFC) data compiled by Bloomberg.
Citic Securities (Hong Kong), along with CLSA, led the growth in licensed financiers versus a year ago with about 300 additions. CMBI and Huatai Financial Holdings (Hong Kong) also added about 70 individuals each, according to SFC data. BLOOMBERG
