Morgan Stanley, HSBC cutting Asia investment banking jobs

HONG KONG: Morgan Stanley and HSBC are cuting dozens of investment banking jobs in the Asia Pacific region this week, sources said, as they ramp up cost-cuting, with weaker dealmaking and sluggish markets in China and Hong Kong weighing on business prospects.

Morgan Stanley is cuting at least 50 investment banking jobs in the region starting this week, three sources with knowledge of the mater said, affecting around 13% of the Wall Street bank’s Asia investment banking workforce of 400.

Layoffs at the investment banking unit of HSBC, which makes the bulk of its profits in Asia, started on Tuesday and are expected to see the departure of around 30 dealmakers in the region this week, three separate sources said.

All of the sources declined to be named as they were not authorised to speak to the media.

Morgan Stanley declined to comment on the job cuts.

An HSBC spokesperson said the banks is continuing to invest in and grow our business, allocating people and resources to the immediate opportunities, but declined to comment on the job cuts.

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 move marks a reversal of fortune for Wall Street banks in Asia which had expanded their operations a few years ago to grab a bigger share of the dealmaking activities in the region, especially in China.