China’s top investment bank CITIC cuts base salary by up to 15% -sources

HONG KONG/BEIJING (Reuters) -China’s CITIC Securities is cutting pay across its investment banking division, lowering base salaries by up to 15%, two sources said, in a rare move in the country’s financial sector as Beijing pushes to bridge income disparity.

The country’s top investment bank by market value has also yet to pay bonuses to bankers for work done last year, the two sources close to the matter said. The bonuses are usually paid out early in the second quarter.

The move comes as the bank and its peers in China are bracing for slower dealmaking, weaker trading, and Beijing’s “common prosperity” campaign that seeks to root out the lavish lifestyle of the financial elite.

All the sources declined to be named as they were not authorised to speak to the media.

CITIC Securities did not immediately respond to a request for comment.

CITIC Securities on Monday informed staff it would lower basic salaries of some of its junior to mid-level bankers by 6,000 yuan ($842.78) to 10,000 yuan per month, one of the two sources and a separate source said.

The reduction in basic salaries could be as much as 20% in some cases, one of them said.