Recent reports on the death of a female employee in the Shanghai region of China Everbright Securities due to a pay cut have sparked discussions on social media platforms. A staff member from the company’s headquarters confirmed that some positions at China Everbright Securities currently have their salaries reduced by up to a third. This year, there have been numerous instances of brokerage firms in mainland China implementing pay cuts. The era of million-yuan average salaries per employee in top brokerage firms is now a thing of the past.
On July 3rd, rumors circulated on Weibo about the alleged suicide of a 30-year-old female employee named Zheng Wenlu at China Everbright Securities, reportedly due to financial difficulties resulting from a salary reduction.
According to speculations, Zheng Wenlu, born in 1994 and a graduate of Zhejiang University with a postgraduate degree, worked in general securities business positions. The immense pressure from a pay cut and the burden of a significant mortgage reportedly led her to jump off a building in Shanghai on July 1st.
Screenshots circulating online showed that Zheng Wenlu had purchased a property in the Bund area of Shanghai for over ten million yuan last year. Some netizens claimed that her husband also experienced a salary reduction. Zheng Wenlu reportedly began exhibiting signs of mental distress starting in March.
In response to the news of the female employee’s passing due to a pay cut, China Everbright Securities stated that a staff member had sadly passed away in the Shanghai region recently but denied the rumor of suicide by jumping off a building.
Multiple Chinese media outlets on July 4th reported that an employee from the company’s headquarters confirmed the existence of pay cuts at China Everbright Securities, with some positions having their salaries reduced by up to a third.
A self-media influencer with 360,000 followers, known as “Xikang Zha Ji,” expressed his insights, highlighting that China Everbright Securities is a leading financial institution in China and considered a stable job. He speculated that the deceased female employee’s annual salary was likely more than one million yuan, emphasizing the impact of the burst financial bubble on the company.
Moreover, he drew connections to his personal experience as a victim of financial product failures at Sichuan Trust, reflecting on the economic downturn affecting many individuals in areas such as the stock market, real estate, and salary reductions.
Looking back at the salary trends within China Everbright Securities, data from Wind Information revealed declines in average annual salaries per employee from 2021 to 2023, with a significant decrease of 39.84% in cumulative terms. The salary reduction trend seems to persist in 2024 without signs of relief.
Wind Financial Terminal estimated that the average annual salary per employee at China Everbright Securities decreased by 36.78% in the first quarter of 2024 compared to the same period in 2023. While the monthly salary may still seem high at 35,000 yuan, the substantial year-on-year decline is evident.
In recent years, rumors of salary reductions in brokerage firms have been rampant. Several top-tier brokerage firms have set the tone by implementing pay cuts, with reductions ranging from single digits to over 10%.
According to Wind data, among over 40 A-share listed brokerage firms, China Citic Securities topped the list for the highest average annual salary last year, below 800,000 yuan. The era of “million-yuan average salaries per employee” in brokerage firms is now a thing of the past.
In 2023, China Citic Securities maintained the highest average annual salary, followed closely by China Everbright Securities, which experienced a 15% decline compared to the previous year.
Out of the 14 brokerage firms with average annual salaries exceeding 500,000 yuan, including Guotai Junan Securities, in 2023, China Citic Securities held the top position with an average annual salary of 791,900 yuan.
Nearly 70% of the brokerage firms with average annual salaries ranging from over 400,000 yuan to over 600,000 yuan are considered the normal range for salary levels within the industry.
In terms of changes in average annual salaries, an estimated 24 listed brokerage firms reported year-on-year declines in 2023. The reductions varied, with most being single-digit percentages, while some exceeded 10%.
Additionally, the financial industry recently witnessed reports of salary cuts. Several brokerage firms saw decreases in both revenue and net profits in 2023, including top players like China Citic Securities, Haitong Securities, and China Everbright Securities. Based on financial reports, China Citic Securities saw a 7.74% decline in revenue and a 7.49% decline in net profits. Haitong Securities reported drops of 11.54% in revenue and a notable 84.59% in net profits, while China Everbright Securities experienced falls of 11.87% in revenue and 18.97% in net profits.