Hong Kong And Chinese Bankers Face Massive Layoffs Due To Region’s Economic Uncertainty
It has already begun at Asia’s largest bank. HSBC’s Greater China commercial banking division has reportedly dismissed at least four bankers based in Hong Kong. This development, amidst a backdrop of distressing period for the industry.
The BBC report that an investment banker from a Chinese-funded bank has highlighted the stark lack of employment opportunities for his peers in Hong Kong. The Chinese based bank has reduced it employees by 10% in June 2023. The banks also states that further cuts could be forthcoming. The downsizing has been a recurring pattern since last year.
Financial experts say that the lack of any substantial projects is dampening the sector’s growth.
Some Hong Kong And Chinese Bankers Talk About Emigrating
Another senior banker in China stated that his bank has been promoting voluntary resignations. The banker expressing his concerns about the lackluster performance of the Hong Kong stock market. Some Chinese bankers are unwilling to bind their future and finances to the region’s uncertain prospects. Thus, they are looking at emigrating.
The trend of job reductions has also hit global banking giants who have previously announced significant layoffs.
Data shows that Bank of America had cut over 20 investment banking positions in Hong Kong. UBS downsized around 20 bankers in Asia last year tied to operations in mainland China. JPMorgan Chase similarly reduced its investment banking staff in Asia by over 30 bankers.
UBS Group AG is considering cutting 90 jobs in Asia. These positions are in UBS’s private wealth and investment banking divisions. Financial experts say this is due to the downturn in China’s stock market and a decrease in dealmaking activity.
The Zurich-based lender is preparing for the cuts after bonus discussions with staff. This could also include bankers from the recently integrated Credit Suisse. The wealth management division of UBS.
Goldman Sachs Group, JPMorgan Chase and other global leaders have had layoffs in Asia over the past 18 months. The decline in Asia’s stock offerings by 30% last year is indicative of the challenges faced by the sector.