More Chinese investment banks are reportedly cutting staff in Hong Kong amid a plunge in new listings, despite expectations for an improved second half.
Haitong International and Guotai Junan International are the latest Chinese investment banks to reportedly reduce staff in Hong Kong with the latter having laid off several fixed income and IPO principals earlier this month, according to a «Financial Times» report citing unnamed sources. China Merchants Bank International, which previously reportedly cut at least five investment bankers, laid off about 10 staff in the last month.
While most onlookers are expecting improvements in the second half of the year, Hong Kong is currently undergoing a major IPO drought. According to data from the Hong Kong Exchanges and Clearings, the city registered a total of 21 new listings on the main board which raised around HK$17 billion ($2.2 billion), as of end-May, down 46 percent and 91 percent year-on-year.
