Bankers and professionals in the financial and securities industries are facing a bleak Christmas as some of them have had their pay cut or their employers plan to lay them off.

Xiao Cheng, an analyst at Haitong Securities Co., was hardly surprised when told that his counterparts at China CITIC Securities were facing a cut in pay.

"My boss has already cut my pay by 35 percent for three months," said the chartered financial analyst with four years' experience in the industry, as he shrugged off the news.

China CITIC Securities employees face a salary cut of 5 percent to 20 percent, said a source with knowledge of the issue. "The more you earn, the wider the pay cut," a source, who declined to be named, told Shanghai Daily.

But CITIC Securities, the country's biggest listed brokerage, has no plan so far to lay off any employees, industry observers said.

"The chilly winter is ahead for everyone in the industry," said Qi Qi, another brokerage employee.

The global financial turmoil, which evolved from the United States subprime mortgage crisis, triggered a financial meltdown, and the sluggish domestic stock markets have hit earnings of the brokerages.

Some employees of financial-related firms are also having to take on additional functions in their work. Xiao Hua, an investment consultant with an overseas consulting firm in Shanghai, has to do some sales in addition to his normal work.

(Shanghai Daily October 23, 2008)