China’s CITIC Securities plans to move dozens of bankers from its offshore platform CLSA in Hong Kong to the mainland to cut costs and meet Beijing’s call to bridge income inequality in the financial sector, people with knowledge of the matter said, reports Reuters. In an unusually broad move for an industry where individual relocations are more common, CLSA is expected to demand the investment bankers move to the Chinese mainland with their pay lowered to local levels or face the likely prospect of losing their jobs, three people said.
CITIC, China’s top investment bank by market value, is pushing for cost cuts in its offshore arm as dealmaking stalls, one of the people said.
The move comes weeks after CITIC cut pay across its investment banking division, lowering base salaries of mainland-based bankers by up to 15%.
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