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China’s Securities Industry Had a Tough Time in 2018

The China Securities Industry Association recently published the data on how security companies performed in 2018. According to the report, the industry slid in both revenue received and in profits. The total income of 131 securities companies in 2018 was 266.3 billion yuan (US $42.3 billion), a downward slide of 14.47 percent from the 2017 level. The total profit was 66.6 billion yuan (US$10.6 billion), down 41 percent from the 2017 level. 106 companies were profitable in 2018, short by 14 from a year ago.

Some companies reduced employees’ salaries. Some even started layoffs.

GF Securities, one of the top ten securities companies, reduced employee’s salaries by a total of 189 million yuan (US $30 million) in 2018, an average cut of 18,000 yuan (US $2,900) per employee.

Huaxia Life Insurance plans to reduce its staff. According to its internal documents, each business unit is required to cut 5 percent of its staff by the end of February. If it doesn’t cut its staff, it has to cut total salaries by 5 percent.

Source: Sohu, January 25, 2019