Why Are More Sell-Side Analysts Switching to Buy-Side This Year? Compensation and Career Growth Drive New Choices

Cailian Press, March 15 (Reporter Lin Jian)
Where might the next stop be for sell-side analysts? Moving into industry, or switching to buy-side, working as researchers until the opportunity arises to become fund managers.

Since the beginning of 2026, there has been a noticeable increase in cases of sell-side institutions switching to buy-side firms. Based on incomplete statistics, at least 20 individuals have changed roles, including chief analysts and junior researchers, involving 11 securities firms and asset management institutions. Due to many private equity firms and small to medium buy-side firms not publicly disclosing hiring information, the actual number of buy-side transitions this year is likely higher.

There is also an answer from Zheng Wei, former chief pharmaceutical analyst at Guolian Minsheng Securities, who is now pursuing a master’s degree in Buddhist studies. Over the past few days, this career choice, starkly contrasting with the financial industry, has quickly gained attention in the financial circle. With an annual salary of over one million yuan, talent remains hard to retain. Diversified outflows of analysts have become the norm.

Regarding this shift, Zheng Wei’s initial motivation was a new perspective on life. She has expressed through multiple channels that after five years in industry and ten years in finance, she experienced intense industry competition and a sense of spiritual emptiness. She hopes to “explore a peaceful path” and re-understand the world through a new foundational system. She states this move is merely turning years of curiosity into systematic research, fundamentally still focusing on overall physical and mental health, without stepping outside the scope of health and wellness.

It is worth noting that compared to previous periods, the departure of sell-side analysts now appears more normalized, with industry ecosystem changes being the core reason. A chief analyst frankly said that, based on current trends, the flow from sell-side to buy-side continues, and the pattern of top-tier securities firms exporting talent and public funds absorbing them in concentrated ways will not change in the short term.

Numerous sell-side to buy-side cases at the start of the year

Recent examples include Yang He, Director of Investment Research at Open Source Securities’ Financial Products Headquarters, who has left to join Penghua Fund; Chen Yuzhe, head of TMT at Yongxing Securities and chief analyst of electronics, who has joined Changxin Fund; and Cao Yifan, formerly an analyst at Shenwan Hongyuan (who previously worked at Shenwan Asset Management), now officially joining Hua’an Fund.

Earlier, Zhejiang Securities’ former banking chief Liang Fengjie, CITIC Construction Investment’s former machinery chief Lü Juan, GF Securities’ former chief asset research officer Dai Kang, among others, have also transitioned to buy-side institutions, insurance asset management, and wealth management companies.

Which sell-side firms have experienced changes? Analysts have left from 11 firms and asset management institutions including China Merchants Securities, Guolian Minsheng Securities, CITIC Securities, CICC Wealth, First Capital Securities, Huatai Securities, Guangfa Securities, Minsheng Securities, Guojin Securities, CITIC Construction Investment, and CICC. Leading firms like CITIC Securities, CITIC Construction Investment, and CICC are among them.

Which buy-side firms have new faces? The buy-side mainly absorbs talent from public funds, including Southern Fund, Hua’an Fund, E Fund, PengAn Fund, Mingshi Fund, Guojin Fund, Xinhua Fund, Ping An Fund, ICBC Credit Suisse Fund, among others. Notably, Hua’an Fund has actively recruited three sell-side analysts from Guolian Minsheng Securities, CITIC Securities, and CITIC Construction Investment in January and February, demonstrating strong absorption efforts.

Reasons for the transition? Lower cost-effectiveness on the sell-side is the main cause

Why switch jobs? Salary is undoubtedly the most obvious reason. Currently, due to reduced commissions, the room for salary increases on the sell-side has become increasingly limited, or even minimal.

A grassroots survey of salary structures shows that research analysts at securities firms earn between 150,000 and 3 million yuan annually, with significant gaps. Top five ranked researchers in New Fortune can earn 2-3 million yuan per year; senior researchers at leading large firms earn about one million yuan, while ordinary researchers earn 300,000–500,000 yuan; mid-sized firms’ senior researchers earn around 500,000 yuan, with regular researchers earning 30,000–50,000 yuan; very small firms (mostly internal services) have research directors earning over 500,000 yuan, but senior researchers cap at 500,000 yuan. Recent graduates or newcomers tend to earn around 150,000–200,000 yuan.

Salaries comprise base pay, performance bonuses, and year-end bonuses, with the latter being the key to widening income gaps. However, this year, year-end bonuses are not as “generous.” “Bonuses are either being cut or delayed, with low expectations,” a common sentiment among analysts. Cailian Press previously analyzed in “Year-end Bonuses Are Being Cut, Analysts Switching Jobs Spark Small Resurgence” that salary cuts have become normal for many.

Stagnant or shrinking income is one aspect; the core issues include increased workload and a severe mismatch between effort and reward. Under the backdrop of declining commissions and intensified competition, the return on investment in research has decreased, driving personnel outflow.

An analyst who recently left a securities firm told us, “Daily routines are filled with roadshows, research reports, conference calls, and company visits, with service density constantly increasing, yet compensation and bonuses don’t keep up. In the past, offline and online roadshows could reach 600–1,000 events per year, with three cities in one day and weekends working non-stop. Under such high intensity, the pay is no longer as good as before, so leaving seems more attractive.”

Sell-side firms prefer more “flexible” arrangements

Many securities analysts joke that internal personnel changes at research institutes are now very low-profile; many colleagues only learn about departures after they happen. Meanwhile, the speed of staffing replacement has clearly accelerated, with shorter onboarding cycles. Since many offices are in different locations, if you’re not paying close attention, you might not even notice new faces in other teams.

Apart from a few special cases, why is switching to buy-side still the main choice? Cailian’s investigation found that at different levels, analysts’ decisions to move to buy-side show clear stratification, with salary and career development prospects being key factors.

Star analysts tend to move to top-tier buy-side firms, where cost-effectiveness is higher; newcomers with about three to four years of experience often switch to smaller buy-side firms, achieving a 20–30% salary increase; analysts without prominent titles or with average performance mostly choose to stay on the sell-side. Rushing to smaller buy-side firms might even lead to salary reductions.

Overall, top-tier buy-side firms are attractive to analysts at all levels; small and medium buy-side firms are more suitable for those with average salaries, shorter industry experience, or facing mergers and restructuring.

The career path is also evolving. Previously, sell-side analysts often viewed public funds as the final destination; now, many see public funds as a stepping stone, with private equity becoming a long-term goal. A few well-known sell-side analysts may directly establish or join private equity firms to enjoy higher income flexibility.

This shift indicates that the career cycle for analysts is being redefined—from a single path of “sell-side to public fund”—to a stepped approach of “sell-side—public fund—private equity,” with the monetization of research and investment capabilities becoming more diversified.