Chinese securities companies and asset management firms are now paying million dollar bonus to retain staff, according to the FT. So fierce is competition for experienced professionals that Wall St.-style bonuses now rule.
There are only 300 people with all the required regulatory qualifications to manage funds, according to the FT’s report, and staff turnover has been running at 30% at the 60 approved asset management, which have seen assets under management increase tenfold to $450 billion in the past two years. Such is the power of supply and demand.
Investment bankers underwriting initial public offerings have also done very nicely. There were $65 billion-worth last year. Investment banks typically take 3%-4% of that in fees.