CITIC Securities Boosts Junior Banker Salaries in Hong Kong
CITIC Securities Ltd. and several other Chinese brokers are increasing salaries for junior bankers in Hong Kong, partly driven by the need to retain talent and manage a rise in trading activity, sources indicate.
The country’s largest brokerage plans to implement salary increases in its CLSA units, with adjustments ranging from 15% to 30%, bringing monthly earnings for junior associates to about HK$75,000 (approximately $9,600). However, it seems these increases might not apply uniformly, according to one insider.
Many junior bankers find themselves in a tough spot: my salary has returned to its 2022 level, but it still lags behind what I earned as an associate back in 2021 during my initial years in the industry.
Other firms, like China Merchants Bank Co.’s CMB International, are matching these salary hikes for junior staff. Yet, numerous competitors are also contemplating adjustments, fueled by a tightening talent market.
These salary boosts represent a significant shift after years of declining pay, which worsened due to diminished bonuses and perks amid shifting political dynamics concerning private enterprises. Bankers, labeled as leading figures in a so-called “hedonistic” lifestyle by the ruling Communist Party, prompted firms in Hong Kong to exercise more caution.
Despite significant challenges in China’s real estate sector and a struggling economy, Hong Kong is experiencing a resurgence in transactions, primarily driven by listings of mainland Chinese firms. This uptick is increasing demand among brokers and bankers alike.
A spokesperson for CITIC in Hong Kong opted not to comment, and CMBI was also unavailable for immediate feedback.
Since late 2022, firms in the investment banking and brokerage sectors have repeatedly reduced their workforce as transaction volumes dwindled, influenced by deflation in China’s economy, property market issues, and heightened government scrutiny of the private sector.
However, over the past year, the situation has begun to shift. Hong Kong has recorded a net gain of around 1,200 licensed financial professionals, pushing the total to nearly 42,500 by the end of June, according to data from the Securities and Futures Commission, as collected by Bloomberg.
CITIC Securities (Hong Kong) and CLSA have been at the forefront of this growth, approving roughly 300 new investors over the past year. Additionally, CMBI and Huatai Financial Holdings (Hong Kong) Ltd. each hired about 70 new staff members.
