Caixin
Apr 01, 2021 08:21 PM
FINANCE

Chinese Brokerages Paid Higher Salaries in 2020, Financial Reports Reveal

What’s new: Staff at 22 Chinese mainland-listed securities firms were paid more on average in 2020 than in the year before amid a bull stock market, according to Caixin’s calculations based on the firms’ annual reports.

The cost per employee at the 22 companies averaged 567,900 yuan ($86,579) last year, up around 14% from 2019.

Among them, employees at China International Capital Corp. Ltd. (601995.SH) received the most pay, with the average annual salary reaching as much as 1.15 million yuan in 2020. It was the only listed brokerage offering over 1 million yuan as an average annual salary last year.

The background: In terms of pay raises, GF Securities Co. Ltd. (000776.SZ), which last year came under the spotlight since its client Kangmei Pharmaceutical Co. Ltd. (600518.SH) was investigated for financial reporting fraud, raised its average employee salary the most in 2020 among all the listed securities firms, with annual pay averaging 733,700 yuan, up 34.15% from 2019. Due to the scandal, in July GF Securities was banned from the securities-sponsorship business for six months and from bond underwriting for a year.

As for salary pools, Citic Securities Co. Ltd. (600030.SH) spent a total of 14.74 billion yuan paying its staff, around the same amount it earned in net profit last year.

About 1,000 mainland-listed firms have released their 2020 annual reports, and eight out of the 10 listed firms offering the highest average annual salaries are securities firms, according to figures from data provider Wind Information Co. Ltd.

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full story in Chinese, click here.

Contact reporter Timmy Shen (hongmingshen@caixin.com) and editor Heather Mowbray (heathermowbray@caixin.com)

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