Morgan Stanley, HSBC to cut dozens of investment banking jobs in Asia Pacific region: sources

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The cuts come as weaker deal making and sluggish markets in China and Hong Kong weigh on business prospects

and HSBC are cutting dozens of investment banking jobs in the Asia Pacific region this week, sources said, as they ramp up cost-cutting, with weaker deal making and sluggish markets in China and Hong Kong weighing on business prospects.

More global investment banks may follow suit in the near future as they come under increased pressure to rein in costs amid rapidly falling income from the capital market and M&A advisory businesses. The top listing destinations for Chinese companies are facing a drought in deal making and shrinking valuations.

IPOs in mainland China dropped 82 per cent from a year earlier to just $2.4-billion during the same period, the smallest quarterly fundraising since the fourth quarter of 2018, showed the LSEG data.

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