According to Wind statistics, at the end of August, the total labor cost of 48 Chinese securities companies decreased by 11.2% compared to the same period last year.
The data shows that in the first half of 2022, 37 securities companies out of the 48 listed had negative revenue growth, accounting for 77%. Only 11 achieved positive growth.
The total labor cost of all the mentioned securities companies in the first half of this year was $11.4 billion (79.5 billion yuan), which decreased 11.3% compared to almost $13 billion (89.7 billion yuan) in the same period last year.
Southwest Securities and Industrial Securities suffered the most, sliding 48% and 51%, respectively.
According to China Business News, the financial industry has witnessed wage cap orders twice this year. On May 13, the China Securities Association issued Guidelines for Setting up a stable salary system for securities companies.
Early in August, the Ministry of Finance notified employees in top positions in financial organizations to have salaries that are not higher than the total income.
The deferred payment period is typically no less than three years, and 35% and more than 40% of performance-based remuneration must be deferred.