China’s CICC slashes bankers pay by 25% – sources

China International Capital Corp (CICC) is implementing a major cost-cutting measure by slashing the base pay of its onshore investment bankers by 25 per cent, Reuters cited on Sunday three sources familiar with the matter.

The salary reductions, impacting over 2,000 bankers, came into effect immediately on Friday, according to the report.

This follows a year of bonus reductions, with CICC bankers experiencing cuts of up to 40 per cent in 2023 as reported by Reuters last year. CICC has not yet responded to requests for comment.

This drastic pay cut highlights the challenges facing Chinese financial institutions. A slowing economy coupled with a sluggish initial public offering (IPO) market, particularly in China’s main listing destinations, is putting pressure on these firms.