So far this year, only half of all 77 brokerage firms in China participated in the IPO processes for 152 companies, leaving the remaining brokerage firms with no income in the formerly lucrative business.
Wind Information, a Shanghai-based financial data provider, said combined revenues from stock trading commissions also came as a disappointment to struggling companies, dropping 40 percent year on year to 38.6 billion yuan in the January-September period. Still, some aren't ready to say the cuts are happening across the board. Ma Yong, an analyst with China Galaxy Securities, said, "There should be further study on whether the phenomenon is that prevalent among brokerages."
While it is necessary for large brokerage firms to carry out restructuring and downsizing, small companies and start-ups are desperate for new talent, he added.
A flow of talent from large companies to small ones is becoming noticeable. Staff that received training from mature brokers are popular among emerging employers, who are willing to offer trained recruits a basic salary 40 to 50 percent higher than their previous employer, according to the Caijing report.
"The flow is inevitable and will be a trend," the report quoted a senior manager with Guotai Jun'an Securities Co. as saying.
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