Morgan Stanley to retrench staff as China business slows

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Some cuts will come from capital markets teams in Hong Kong and mainland China and most of the rest are expected to be from other teams focusing on China business

The logo for Morgan Stanley is seen on the trading floor at the New York Stock Exchange in New York on August 3 2021. File Picture: REUTERS/ANDREW KELLY Wall Street major Morgan Stanley is expected to start a fresh round of layoffs globally in the coming weeks, three people with knowledge of the plan said, as dealmaking business takes a hit due to rising inflation and an economic downturn.

One of the sources said the bank's 30-plus technology investment banking team in Asia Pacific would also be affected by the cuts. With prospects for arranging and financing deals drying up, some investment banks are firming up plans to cut jobs. M&A transaction values involving China plunged 35% year on year to $266bn in the first nine months of the year, to the lowest level since 2013, Refinitiv data showed, although it remains Asia’s largest deals market.

“You've got to take into account the rate of growth we've had in the last few years, and we've learnt some things through Covid-19 about how we can operate more efficiently.”

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