China’s Citic cuts around 20 bankers from Hong Kong’s CLSA: sources

CHINA’S Citic Securities laid off around 10 per cent of the dealmakers from its offshore platform CLSA this week and offered to move bankers from Hong Kong to the mainland, according to two sources with knowledge of the matter.

The company on Tuesday (Jul 18) and Wednesday cut about 20 staff out of around 200 employees in its investment banking division in Hong Kong, the sources said.

CLSA declined to comment. Citic did not immediately respond to a Reuters’ request for comment.

The sources could not be named as the information had not yet been made public.

The Hong Kong-based investment bank also this week demanded some dealmakers move to the Chinese mainland with their pay lowered to local levels, or face the likely prospect of losing their jobs, the sources said.

Reuters reported on Tuesday that more than 30 per cent of CLSA’s investment banking workforce of 200 in Hong Kong may receive the relocation offer.

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The unusual move was made as the bank’s parent firm Citic is under pressure to lower costs and adhere to Beijing’s common prosperity drive. REUTERS