TWO analysts at a major domestic brokerage were suspended Tuesday after a racy video of them partying with clients went viral, underscoring concern that some sell-side researchers are going too far to win votes for China’s most important analyst ranking.

Shanghai-listed Founder Securities Co. suspended the analysts after a preliminary investigation, citing a video and photos that brought “severe damage” to the firm’s reputation. The analysts were also barred from this year’s New Fortune research contest, a hyper-competitive Chinese version of the Institutional Investor research poll. Voting for this year’s rankings started Tuesday and runs through Sept. 27.

The episode highlights the stakes for analysts as they vie for top spots in the New Fortune rankings, which can have a huge bearing on their paychecks and status in the industry. The competition, hosted by a magazine, is one facet of China’s capital markets.

The video circulating online reveals brief flashes of what appeared to be a raucous dinner party. A man and a woman hugged and kissed while a couple of men raised their shirts to expose their torsos.

Compensation levels at many Chinese brokerages are tied directly to the New Fortune rankings, and the impact of winning a top spot can be massive. While run-of-the-mill analysts with five years of experience earn the equivalent of about US$75,000 a year in China, someone who appears on the list can take home US$1 million or more.

More than 1,500 analysts from 43 brokerages participated in this year’s competition, and about 1,600 global and domestic institutional investors managing 70 trillion yuan (US$10 trillion) will vote.

Contestants undertake grueling roadshows in the run-up to the poll, doing the rounds from Shanghai to Beijing to Shenzhen. Analysts routinely pay for buy-side voters’ meals and hand out “red packets” containing cash or gift cards, according to industry participants. (SD-Agencies)