Exclusive: China’s CICC may cut investment banking headcount by at least 10% this year, sources say

SHANGHAI, May 7 (Reuters) – China International Capital Corp (CICC) (3908.HK), opens new tab may reduce its investment banking headcount by at least 10% this year, two people with knowledge of the matter said, as a capital market downturn and sluggish economy darken prospects.

Beijing-based CICC, which had about 2,400 investment banking staff at the end of 2023, is considering cuts among its dealmakers at home and offshore within the year, the people said.

CICC is also considering downsizing its onshore investment banking by one-third between 2024 and 2026, with an annual turnover rate of about 13%, one of the people said. The move would mainly affect investment banking staff in mega cities such as Beijing, Shanghai and Shenzhen, added the person.

The intention to cut headcount has been communicated to several bankers from their managers or the Human Resources department, but the bank has made no internal announcements of its plan, the people said.

Source: REUTER