Morgan Stanley and HSBC are cutting dozens of investment banking jobs in the Asia Pacific region amid cost-cutting efforts. Weaker deal-making and sluggish markets in China and Hong Kong are impacting their business prospects. Morgan Stanley will eliminate at least 50 positions, around 13% of its regional workforce. Meanwhile, HSBC began layoffs affecting approximately 30 dealmakers this week. Both banks have experienced a downturn in business, reflecting broader challenges in the sector, including a significant drop in IPOs and M&A activities. Industry sources indicate that other global banks may also reduce their staff soon due to declining revenues from capital markets and advisory services.