Chinese Securities Industry Faces Layoff Wave... Over 6,700 Employees Left in Half a Year

A strong wave of layoffs is sweeping through the Chinese securities industry. As part of efficiency measures due to poor performance, the number of industry employees decreased by about 6,700 in the first half of this year alone.

On the 1st, China’s Caijing Daily confirmed the half-year reports of 50 domestic listed securities firms (or their parent companies) and reported that the number of employees in the related industry recorded 317,400, a decrease of 6,760 compared to the end of last year. The number of securities firms with a decrease in employees compared to last year reached 18, accounting for more than 30% of the total.

[Image source=Reuters Yonhap News]

In particular, large securities firms experienced significant layoffs. Fangzheng Securities had the largest layoff scale in the first half with 1,381 employees, and Zhongxin Securities, Guoxin Securities, Zhongxin Construction Investment, Guangpa Securities, and Xingye Securities also reduced their workforce by more than 500 employees in the first half. In addition, Guotai Junan, Haitong Securities, Zhongjin Gongsi, and Changjiang Securities all saw employee numbers decrease by more than 100.

Due to various factors such as cost reduction, increased efficiency, and pressure on company performance, some securities firms are also reducing their hiring scale. A representative from a mid-sized securities firm explained to Caijing Daily, "Currently, we are mainly conducting small-scale recruitment through schools, and there is no large-scale hiring."

On the other hand, some securities firms increased their staff. Yinhe Securities added 319 employees, Nanjing Securities increased by 14, and Shanxi Securities and Pacific Securities each slightly increased by fewer than 10 employees. Excluding these increases, the actual number of resignations in the industry reached 7,104.

The Chinese stock market is showing sluggish trends due to concerns about economic recession and other factors. The Shenzhen Composite Index, which was at the 1800 level at the beginning of the year, recorded 1544.23 as of the 1st, and the Shanghai Composite Index fell below 3000 points in June (21st, 2998.14) and has struggled to recover since.

Caijing Daily explained, "Since last year, as initial public offerings (IPO) have gradually contracted, securities firms and investment banks have entered a phase of tight management," adding, "Employees in related departments of securities firms have started to change jobs, moving to some brokerage asset management sectors and others."