Hong Kong investment bankers risk losing jobs as banks cut costs: report

About 200 bankers in the city have reportedly lost their jobs in the past year.

Hong Kong investment bankers face more job cuts amidst a slowdown in initial public offerings (IPOs) and as employers look to trim highly compensated staff, reports Bloomberg.

An estimated 200 Hong Kong bankers reportedly lost their jobs in the past year, Bloomberg Intelligence senior analyst Francis Chan wrote in a report.

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Morgan Stanley and HSBC are amongst banks who have made cuts to their investment banks in April– with Hong Kong and China reportedly bearing the brunt.

With pay for senior bankers that’s 40-70% higher than peers receive in Singapore, Hong Kong bankers may find their compensation becomes a “curse” as employers cut back, Chan wrote.

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“More global banks may further trim workforces in the city to achieve bigger cost savings, especially during China’s slowdown,” he said.

Problems plaguing Hong Kong’s investment bankers are nothing new. Earlier in 2023, hiring experts told Asian Banking & Finance that some financial institutions have enacted informal hiring freezes and even some layoffs. Focus has shifted from hiring to maximising current employees’ productivity, the experts said.

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