Project Shortages and Pay Reform Drive Investment Banker Headcount Below 8,000

Sponsor representatives (known as 'baodai'), once considered the golden ticket in investment banking, are facing continued headcount reductions. The latest data shows their numbers have dropped below 8,000, returning to 2023 levels. "The curtain has only just risen; there is now a severe surplus of sponsor representatives," said an investment banking professional at a mid-sized securities firm. The reality of a project shortage is evident. The phenomenon of 'head firms eating everything' continues to intensify, with nearly half of sponsor representatives facing the predicament of having no projects to work on. In the first three quarters of this year, the top three securities firms accounted for 40% of IPO project shares, setting a record high. Even when projects are available, revenue expectations continue to be rewritten. Investment banking fees remain persistently low, and systems such as deferred payments and clawbacks have been implemented. The departure of sponsor representatives is no longer an accident but a structural elimination.