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China’s deals slowdown hits HK’s investment banking sector

Hong Kong investment bankers face potential job cuts amid a deal slowdown in China, according to Bloomberg Intelligence. About 200 bankers in Hong Kong have been laid off over the past year, with senior bankers earning 40-70% more than their Singapore counterparts, making them prime targets for cost reductions. The downturn is driven by deteriorating US-China relations, a crackdown on private enterprise, and a real estate crisis, impacting major banks like Morgan Stanley and HSBC. Hong Kong’s IPO activity has also plummeted, with proceeds dropping to a two-decade low. Despite a few more IPO applications, the outlook remains bleak. In contrast, the wealth and private banking sectors are relatively stable, supported by mainland wealth funds.


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