Japan’s top three brokerages are cutting back on graduate hires as household investors continue to shun the stock market, squeezing their retail business.
The total number of planned graduate hires in 2018 by Nomura, Daiwa Securities and SMBC Nikko Securities will be the lowest in five years, according to a Bloomberg News survey of hiring plans. The securities firms will add a total of about 1,540 people in their annual intake next April, down from 1,847 this year.
Brokerages are cutting back on their retail businesses, which had accounted for more than half their total profits in the years when stocks surged after Prime Minister Shinzo Abe came to power in late 2012. This initial optimism has faded, and increasing political risks are prompting individual investors to park their cash in bank accounts rather than invest in securities - even in a negative rate environment.
Hit the link below to access the complete Bloomberg News article: