Layoffs hit securities firms (2)

"Such a bleak market leaves securities companies with no choice but to cut expenses," said the insider.

China International Capital Corporation (CICC), one of the country's largest investment banks, is reportedly planning to cut employees.

A CICC spokeswoman surnamed Tan refused to comment on the issue when contacted by the Global Times.

Major securities companies, like CITIC Securities, China Galaxy Securities and GF Securities, are mulling adjustment plans that would lay off workers and cut wages, the Shanghai-based China Business News reported Tuesday.

All of the firms declined to comment.

The end of the year is the bonus season in the financial sector, so securities firms may conduct layoffs around this time to save money by eliminating massive year-end bonuses, an economist with direct knowledge of the matter told the Global Times on condition of anonymity.

Li Weidong, research director of investment advisor ChinaVenture, told the Global Times that in the past, securities companies and investment banks have seen expenses grow after they greatly expanded their businesses due to relatively good stock market performance and hot initial public offerings (IPOs).