HSBC Plans Further Asia Investment Banking Job Cuts: Report

HSBC Holdings, amidst a slowdown in deal flow, joins the ranks of global financial firms trimming their workforce. According to Reuters, HSBC plans to cut an additional 20 investment banking positions in Asia, bringing this week's total layoffs to 30.

The Asia focused bank initiated the job cuts on Tuesday, notifying around a dozen bankers of the decision. This move aligns with actions taken by other major players in the industry, such as UBS Group AG, Goldman Sachs Group Inc. and Citigroup Inc., who have all downsised their Asia offices over the past year and a half due to declines in stock sales and mergers.

Morgan Stanley also announced earlier a reduction of 50 investment banking roles in the Asia-Pacific region, particularly in China and Hong Kong. The economic downturn and stock market volatility in China have adversely impacted dealmaking, prompting significant cuts in key banking positions in the country last year.

The downturn in deal activity is evident in Hong Kong's Initial Public Offerings (IPOs), which have plummeted over the past year. Proceeds from IPOs reached a historic low last year, and the trend continued with a 29 per cent decline in the first quarter of this year, totaling approximately US USD 605 million. This marks the weakest three-month period since the global financial crisis.