Two of China’s largest investment banks are reportedly cutting travel budgets across the board from accommodation to commute to both junior and senior executives.
CSC Financial and Citic Securities delivered broad cuts to travel budgets, according to a «Bloomberg» report citing internal memos.
Expenses linked to travel, accommodation and even local transpiration were affected in yet another example of ongoing pressure for the financial sector to support the nation’s recovery from the pandemic.
Travel Cuts
At CSC, domestic travel for managing directors will be downgraded to economy flights and second class alongside hard-berth train seats, according to a memo from the firm.
Similarly, managing directors at Citic Securities were also asked to fly coach though there was no details about the travel class previously offered.
Accommodation Cuts
Accommodation costs will also be reduced with Citi Securities cutting daily hotel allowances for non-executive bankers from 900 yuan ($139) to 700 yuan per day in major cities like Beijing or Shanghai, according to unnamed sources in the report.
In CSC’s memo, bankers are encouraged to share rooms discouraged to make upgrades even by paying out of their own pocket.
CSC eliminated the reimbursement of commuting costs in and out of airports but it included a transportation allowance of 80 yuan per day.
National Support
The latest spending cuts are another example of pressure for the country’s financial sector to support the ongoing recovery.
Financial firms were given details by the Ministry of Finance on how to limit pay early last year while Chinese Premier Li Keqiang called on the sector to make sacrifices and forego up to $1.5 trillion yuan ($212 billion) of profits to stabilize the economy.
Travel cost cuts are not occurring in mainland China alone with global banks like HSBC and Standard Chartered forecasting lower spending due in part to grater reliance on video technology and generally reduced travel.
