score-card

Published 17:45 IST, April 17th 2024

Morgan Stanley and HSBC cut jobs amid Asia Pacific slowdown

Job cuts reflect a broader trend among banks grappling with declining deal-making activities in China amidst an economic slowdown.

Reported by: Business Desk
Follow: Google News Icon
  • share
Morgan Stanley and HSBC cut jobs amid Asia Pacific slowdown | Image: Unsplash
Advertisement

Morgan Stanley and HSBC cut jobs: Morgan Stanley and HSBC are reducing their investment banking workforce in the Asia Pacific region due to weaker deal activities and sluggish markets in China and Hong Kong.

Morgan Stanley is cutting at least 50 investment banking jobs in the region, affecting around 13 per cent of its Asia investment banking workforce. HSBC, which generates most of its revenues and profits in Asia, has started layoffs in its investment banking unit, with around 30 deal-makers expected to depart this week.

Advertisement

The job cuts reflect a broader trend among banks grappling with declining deal-making activities in China amidst an economic slowdown. Other banks have also implemented similar measures in response to the challenging market conditions.

Hong Kong's stock exchange saw a significant drop in IPOs in the first quarter, while money raised via China IPOs also plummeted. The total value of merger and acquisition deals involving China also decreased, leading to lower fees for bankers.

Advertisement

The job cuts at Morgan Stanley and HSBC are part of a broader trend of downsizing in the investment banking sector in the region. In January, Bank of America laid off around 20 bankers, following similar moves by UBS, Citigroup, and other firms.

(with Reuters inputs)

Advertisement

17:45 IST, April 17th 2024