GF Securities Cuts Compensation Expense to Boost 2018 Results

GF Securities Co. will cut compensation expenses for 2018, the latest sign of struggles in China’s brokerage industry.

While the firm didn’t say how much it will reduce or how it would effect the changes, it cited operational risks as the reason for the decision in a filing late Jan. 25. As a result, profit at its parent company and asset management unit will rise about 6 percent from the company’s preliminary disclosure, the statement showed.

Authorities’ crackdown on risky credit and concerns about the U.S.-China trade war have hit sentiment, forcing Chinese brokerages to warn of writedowns that may ...