HSBC Holdings will cut around 20 jobs across its investment banking division in Asia, according to people familiar with the matter.
The lender has reportedly started a new round of job cuts at its Asia investment bank as deal flow in Hong Kong and China have been ‘sluggish’ post pandemic.
They are expected to cut an additional 20 investment banking jobs in Asia.
The upcoming cuts will take the total reduction in headcount to around 30 this week, three sources with knowledge of the matter said.
HSBC is not the only big company forced into making job cuts.
Global rivals including UBS Group AG, Goldman Sachs Group Inc. and Citigroup Inc. have all had to make job cuts in their Asia offices over the past 18 months as stock sales and mergers tumble.
The economy in China and Hong Kong has struggled to find its footing since the pandemic meaning bosses have had to find ways to save cash amid a slump in deal-making across the region.
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The lender cut around a dozen bankers across its investment banking division in Asia yesterday, (Apr 16), one of the people said, asking not to be identified.
A Hong Kong-based spokesperson said that the size of the bank’s workforce will fluctuate in any given year and overall, its investment banking division delivered strong results during “a very challenging few years.”
Initial public offerings (IPOs) in Hong Kong have decreased over the past year, with proceeds dropping to the lowest in more than two decades last year.
The money raised from IPOs fell another 29 per cent in the first quarter to about US $605million, the worst three-month period since the global financial crisis.
Earlier this month, Greg Guyett, HSBC’s head for global banking and markets, said Hong Kong’s IPO market isn’t likely to recover until at least the second half of this year, even as investment flows to China show signs of rebounding.
The bank’s overall headcount for global banking and markets will probably “continue to trend down” as the firm leverages technology to streamline operations, Guyett said.
HSBCs job cuts have been less severe compared to other Wall Street banks.
The UK lender last year dismissed at least four Hong Kong-based bankers, and in the previous year, it trimmed its debt team in Hong Kong, reports have said.
Guyett has explained plans to expand the business to other Asian locations to have a wider reach.
He wants to hire senior bankers with good client relationships in locations such as Singapore and Mumbai.
GB News has contacted HSBC for comment.
