Investment-banking seen as taking heavy toll on young men

"Earnest and down-to-earth, I will devote everything to my country," wrote a senior deputy sponsor at Guosen Securities on his signature line on Sina Weibo. They were his last published words.

Guo Ximin suffered a fatal heart attack that morning of August 7th. He was taken to the Armed Police General Hospital, but efforts to revive him failed, and about an hour after he was stricken, he was pronounced dead. He would have turned 33 next month.

Including Guo, four elite staff members at investment banks between 33 and 44 have died over the past three months.

Though the deaths took place at various locations around the country, observers around the markets believe they were all tied to a single cause, the disappointing performance of China's stock markets, both in Shanghai and Shenzhen this year.

Earnings of investment banks for underwriting and sponsorships, have been nearly halved over the first seven months of last year, to 4.5 billion yuan, according to the Wind Information, a financial data provider based in Shanghai. Profits from IPOs and other market investment have also been hit hard.

"Those dealing with IPOs work extremely long hours, barely able to keep up with client meetings and filings," said Xiao Luyuan, 28, who previously worked for McKinsey China and Barclays. "The trading department is no better,. Workers are shouted at by bosses and berated for poor work performance in a falling market."

People show unwillingness to work in that environment. According to a third quarter survey conducted by the human resources agency Hudson, banking and the financial industry are shown to be among the gloomiest about economic prospects.

Only 5.4 percent of the managers interviewed in this sector said they will cut down their hiring scheme in the next three months. Senior overseas bankers, especially those specializing in securities businesses, will be the most vulnerable in terms of the possibility of losing their jobs.

Guosen Securities, where Guo Ximin was employed, outperformed the other securities houses. The company had 17 successful IPOs launches this year, surpassing Ping An and topping the Chinese Securities pack with an impressive 13.7 billion yuan raised.

One of the 17, the largest IPO on the growth enterprise board, was sponsored by Guo. In his four and half years as a deputy sponsor, working overtime, staying up late, all at the cost of his health and his family life were common practice. "I can even feel death as I work late right now," wrote Guo on weibo early on the morning of March 12th, 2011. "We often sacrifice our lives and health unwillingly. Damn investment banks!"

Nearly 1,000 people commented on Guo's last weibo, with simple sentiments such as "rest in peace" or an understanding: "May there be no staying up late, no working overtime, no business trips, no prospectuses, no presentations, no securities regulatory commission in heaven."

(HK Edition 08/31/2012 page4)