FINANCE

China Tightens Broker Pay Rules, Expands Clawbacks to Former Staff

Published: Apr. 17, 2026 9:39 p.m. GMT+8

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The Securities Association of China revised pay rules for brokerages, requiring longer-term performance assessments and stricter deferral arrangements. Photo: VCG

China’s securities industry self-regulator has revised pay rules for brokerages, explicitly allowing firms to claw back performance-based compensation from former and retired employees.

The updated guidelines, released Friday by the Securities Association of China, require longer-term performance assessments and stricter deferral arrangements, as regulators move to curb excessive risk-taking and better align pay with long-term financial stability.

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China’s Securities Association revised brokerage pay rules, allowing clawbacks of performance pay from former/retired employees for violations or risks.
Mandates 3-year performance metrics for key roles; deferrals vest after year 2 in gradual installments, no circumvention.
Sector net profit: 219.4B yuan in 2025 (+46% YoY); 34/39 brokerages raised pay in H1 2025.

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