Two major Chinese investment banks plan to lay off nearly a third of their staff amid a tough environment for new listings.

Two major Chinese investment banks are planning to gradually lay off about 30% of their staff, according to a report by local media “Sing Tao Daily” (translated from chinese).

The layoffs, which involve more than 100 people, cover roles in investment banking, equity capital markets and other departments, including junior staff and the Hong Kong team.

Top 10 sponsors

One of the two investment banks has been ranked among the top ten sponsors of initial public offerings (IPOs) in Hong Kong several times in recent years, according to the report which did not disclose the company’s name. .

The investment bank is said to be downsizing after taking advantage of the boom in the IPO market last year to expand in Hong Kong, including the addition of more than 10 chief executives (ROs) who can each be responsible for two or three new registration requests. at most.

Winter IPO

After a strong year in 2021, Hong Kong faced a sharp reversal in the IPO market due to the lack of large listings and intensified scrutiny by the local stock exchange for small listings.

According to data from Hong Kong Exchanges and Clearings, the city saw a total of 19 new main draw listings which raised around HK$15.9 billion ($2 billion), as of the end of April, in decrease of 46% and 90% per year. over-year.

While the outlook remains weak in the near term, optimistic onlookers are hoping for an accelerated return of US-listed Chinese stocks to the Hong Kong stock exchange.