(Yicai) April 3 -- Ten of the 25 Chinese securities firms that have released their annual financial reports cut employee wages last year, while around half trimmed pay per head.

China International Capital Corporation paid nearly CNY700,000 (USD96,750) per head in 2023, down 10 percent from a year earlier and 40 percent from 2020, according to the Beijing-based broker’s latest annual earnings report.

Total pay at the 25 companies rose 1.6 percent to CNY127.7 billion (USD17.7 billion), with Citic Securities heading the list at CNY20.8 billion (USD2.87 billion), a 0.7 percent increase. Total employee numbers rose by 4,300 to 223,700, but 10 firms reduced their headcount, with Everbright Securities letting go of 477 workers and Sealand Securities 396.

Brokerages rank first for remuneration in the financial sector. In 2022, a trader's wife revealed his CNY82,500 (USD11,400) monthly salary on social media, sparking debate about high pay at securities firms. The Securities Association of China subsequently asked brokerages to set up a robust salary mechanism and improve incentive and disincentive schemes, which resulted in wages starting to fall from 2022.

In addition to being affected by the "salary limit order" policy, compensation at brokerages is linked to stock market performance. Chinese mainland markets first rose and then fell last year, with lower trading activity, while the government toughened the rules on listings and refinancing in the second half. That led to a drop in earnings at most securities firms.

Net profit at the 25 brokerages slid 3.9 percent in the 12 months ended Dec. 31, while operating revenue fell 2 percent.

CICC's earnings declined for two straight years, with profit down 19 percent to CNY6.2 billion in 2023, while operating income sank 11.9 percent to CNY23 billion. Its net commission income from the brokerage business tumbled 13.4 percent and investment its banking income plunged 47 percent.

Editor: Martin Kadiev