Western financial giants have slashed their staff numbers at their investment banking units in China “by the most in years” as a market slowdown hit profits and years of expansion, according to report by the FT, which said five of the seven Chinese securities units that are part of US or European banks made a loss or reported a big fall in profit last year. Staff at the seven units fell 13% from 2022.
Indeed, banks cut 60,000 jobs around the world in 2023 amid a drop in deal-making and public listings, but hopes that China would continue to grow were wrong, the report said, as Dealogic data showed that China had just $8.3 billion in IPOs as of May and cross-border mergers and acquisitions remained weak. Meanwhile, opportunities in India, Southeast Asia and the US have looked more promising to some investors.
Read the full report. The FT.
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