Morgan Stanley, HSBC cutting dozens of Asia investment banking jobs as deals slump

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HONG KONG: Morgan Stanley and HSBC are cutting dozens of investment banking jobs in the Asia Pacific this week, sources with knowledge of the matter said, as weaker deal activities and sluggish markets in China and Hong Kong weigh on their business prospects.

Logos of Morgan Stanley and HSBC as seen on their respective headquarters in New York and Hong Kong. at least 50 investment banking jobs in the region starting this week, three sources with knowledge of the matter said, affecting around 13 per cent of the Wall Street bank's Asia investment banking workforce of 400.

The cuts are among the largest to the two banks' China-focused investment banking teams and follow similar measures by other banks stung by a decline in deal-making activities in China amid a slowing economy. The top listing destinations for Chinese companies are facing a drought in dealmaking and shrinking valuations. Hong Kong's stock exchange saw 12 initial public offerings raise HK$4.7 billion in the first quarter, a drop of 30 per cent year on year and the worst since 2009, according to data from Deloitte.

The total value of merger and acquisition deals with China involvement shrank by 36 per cent, according to LSEG data, pointing to smaller fees bankers earned from clients.around 20 bankers in the region, following a flurry of investment bank downsizing by UBS, Citigroup and other boutique firms.

 

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