Hong Kong investment bankers could face more job cuts as the slowdown in China deals persists and employers look to trim highly compensated staff, Bloomberg Intelligence senior analyst Francis Chan (陳永富) said.
An estimated 200 Hong Kong bankers lost their jobs in the past year, Chan wrote in a report published yesterday. With pay for senior bankers being 40-70 percent higher than peers receive in Singapore, Hong Kong bankers may find their compensation becomes a “curse” as employers cut back, Chan wrote.
“More global banks may further trim workforces in the city to achieve bigger cost savings, especially during China’s slowdown,” Chan said.
Photo: EPA-EFE
Global financial firms have been cutting investment banking staff in Asia due to a deal drought amid deteriorating US-China relations, a crackdown on private enterprise and a property crisis. Morgan Stanley and HSBC Holdings PLC are among banks that have made cuts to their investment bank this month, with Hong Kong and China bearing the brunt.
Initial public offerings (IPOs) have been depressed in Hong Kong, with proceeds slumping to the lowest in more than two decades last year. The money raised from IPOs fell another 29 percent in the first quarter to about US$605 million, the worst three-month period since the 2008 global financial crisis.
While there are a higher number IPO applications in Hong Kong, IPO prospects for the city “may remain dire,” the report said.
Investment banking analysts and associates in Hong Kong made 30-100 percent more than in Singapore, mainland China and Japan, while directors and managing directors made 40-70 percent more, according to a Hays Asia survey in late last year.
In comparison to investment banking, the job market in wealth and private banking remains stable, with mainland wealth funds flowing to Hong Kong, benefiting banks including HSBC, Standard Chartered PLC and Bank of China (Hong Kong).
“Hong Kong’s finance professionals could face diverging fates due to different prospects for its capital markets and wealth management sectors,” Chan wrote.
John Mullally, managing director for Hong Kong at recruiting firm Robert Walters told Bloomberg Television that a lot of clients are saying they are “at the bottom” in terms of cuts.
“The sense we’re getting is that there’s probably going to be a little bit more trimming over the next kind of quarter, quarter and a half, but that as we go into the second half of the year, there will be some improvement,” he said. “But that isn’t going to necessarily result in hiring anywhere near the levels of 2021.”
purpose: Tesla’s CEO sought to meet senior Chinese officials to discuss the rollout of its ‘full self-driving’ software in China and approval to transfer data they had collected Tesla Inc CEO Elon Musk arrived in Beijing yesterday on an unannounced visit, where he is expected to meet senior officials to discuss the rollout of "full self-driving" (FSD) software and permission to transfer data overseas, according to a person with knowledge of the matter. Chinese state media reported that he met Premier Li Qiang (李強) in Beijing, during which Li told Musk that Tesla's development in China could be regarded as a successful example of US-China economic and trade cooperation. Musk confirmed his meeting with the premier yesterday with a post on social media platform X. "Honored to meet with Premier Li
Dutch brewing company Heineken NV on Friday announced an investment of NT$13.5 billion (US$414.62 million) over the next five years in Taiwan. The first multinational brewing company to operate in Taiwan, Heineken made the statement at a ceremony held at its brewery in Pingtung County. It also outlined its efforts to make the brewery “net zero” by 2030. Heineken has been in the Taiwanese market for 20 years, Heineken Taiwan managing director Jeff Wu (吳建甫) said. With strong support from local consumers, the Dutch brewery decided to transition from sales to manufacturing in the country, Wu said. Heineken assumed majority ownership and management rights
coverage expansion: The industrial PC maker has proposed to acquire 3.938 million Aures shares to strengthen its global smart retail presence Leading industrial PC maker Advantech Co (研華) plans to acquire Aures Technologies SA, a French company known for its point-of-sale (POS) and kiosk equipment, to expand its global coverage in smart retail products and services. Advantech proposed to acquire 3.938 million Aures shares from the French firm’s major shareholder and through a public tender offer at up to 6.7 euros per share, the PC maker said in a statement after announcing the deal at the Taiwan Stock Exchange late on Friday. The company aims to acquire up to 100 percent equity of Aures, a well-known brand in the western market with a
Microsoft Corp yesterday said that it would create Thailand’s first data center region to boost cloud and artificial intelligence (AI) infrastructure, promising AI training to more than 100,000 people to develop tech. Bangkok is a key economic player in Southeast Asia, but it has lagged behind Indonesia and Singapore when it comes to the tech industry. Thailand has an “incredible opportunity to build a digital-first, AI-powered future,” Microsoft chairman and chief executive officer Satya Nadella said at an event in Bangkok. Data center regions are physical locations that store computing infrastructure, allowing secure and reliable access to cloud platforms. The global embrace of AI