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Chinese Brokerage Is Said to Ask Staff Not to Flaunt Wealth
Liao Shumin
DATE:  Jan 14 2022
/ SOURCE:  Yicai
Chinese Brokerage Is Said to Ask Staff Not to Flaunt Wealth Chinese Brokerage Is Said to Ask Staff Not to Flaunt Wealth

(Yicai Global) Jan. 14 -- An unidentified Chinese brokerage has asked employees working in fixed income financing to avoid showing off their personal wealth, online news outlet The Paper reported, citing screenshots of internal code of social conduct documents that were leaked online yesterday.

The staff “cannot drive luxury cars worth more than CNY1 million (USD157,510), wear high-end watches worth over CNY150,000 (USD23,626) or use upmarket bags worth in excess of CNY50,000 (USD7,877) in the working environment,” according to the screenshots, which have not been authenticated.

China’s securities firms have long been famous for extravagant salaries. The average per head at 50 listed firms was CNY524,800 in 2020, with one staffer making over CNY1 million, according to media reports.

Such high salaries have drawn official attention, with a recent notice seen as a prelude to potential pay restrictions in the industry. The Securities Association of China sent the notice to members, requiring them to submit feedback by Jan. 17, media reports said on Jan. 7.

Sound and reasonable compensation is necessary for the healthy and stable development of members, as well as a key basis for promoting the sector’s high-quality development and preventing and resolving financial risks, the SAC said.

Screenshots of 2021 payrolls allegedly for an analyst surnamed Lu who works for Zhongtai Securities also aroused heated discussion online earlier this week. The screenshots showed the analyst's pretax income tallied CNY2.2 million last year.

Last November, the Fujian province branch of China Securities Regulatory Commission warned Huafu Securities, threatening punishment for non-compliance with the salary incentive mechanism.

Editor: Tom Litting

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Keywords:   Securities Company,Salary Limit