Chinese Brokerage CICC Cuts Dealmakers' Base Pay by 25%

China International Capital Corp (CICC) is cutting the base pay of onshore investment bankers by as much as 25%, reported Selena Li and Julie Zhu for Reuters.

The rare move by the top investment bank to reduce base pay by as much as a quarter underscores the challenges Chinese financial firms face amid a slowing economy and sluggish IPOs in the main listing destinations in China and Hong Kong. I Photo: PacificPlan

Some of the affected dealmakers were notified on Friday about the cuts, said the sources, who have knowledge of the pay reductions but declined to be named as they are not authorized to speak to the media.

The cuts will take immediate effect, reported Summer Zhen also for Reuters.

The salary cuts will affect more than 2,000 bankers and come after one of the largest investment banks in China by headcount trimmed bankers' bonuses last year by up to 40%, as Reuters reported in April last year.

The rare move by the top investment bank to reduce base pay by as much as a quarter underscores the challenges Chinese financial firms face amid a slowing economy and sluggish IPOs in the main listing destinations in China and Hong Kong.