[Hong Kong Investment Banking Sector Faces Layoffs Due to Economic Slowdown](Comprehensive report by our reporter Zheng Xin)
Hong Kong’s investment banking sector is currently grappling with a series of layoffs as a result of the double blow of China’s economic slowdown and reduced transactions. A recent analysis report from Bloomberg Intelligence (BI) estimated that around 200 bankers in Hong Kong lost their jobs last year.
Data from Bloomberg reveals that the salary of senior bankers in Hong Kong is significantly higher, ranging from 40% to 70% compared to the same position in Singapore. The salary gap is even wider when compared to mainland China and Japan, reaching 30% to 100%. However, with the underwhelming performance of the Chinese and Hong Kong stock markets, coupled with the departure of foreign capital from the Hong Kong stock market, foreign banks are feeling the pressure of excessive salaries paid to bankers. This situation has been likened to a “curse” as it poses a threat of being laid off by banks.
Notable banking giants, such as Morgan Stanley and HSBC Holdings, have already begun implementing layoffs in the Asia-Pacific region, with a majority of affected bankers based in China and Hong Kong. Other prominent banks like Goldman Sachs Group Inc., Citigroup Inc., and JPMorgan Chase & Co. have also undertaken unprecedented layoffs across Asia in the past two years.
Senior analyst Francis Chan highlighted in the report, “More multinational banks may consider further layoffs to cut costs, especially during China’s economic slowdown.” The investment banking industry is bracing itself for what could be described as a “cold winter.”
Apart from layoffs, the initial public offering (IPO) market in Hong Kong is showing signs of sluggishness, with fundraising hitting its lowest level in over two decades last year. In the first quarter of this year, IPO financing plummeted by 29% to US$605 million, marking the worst quarter since the global financial crisis.
The recent passing of Dong Mu, a renowned metaphysician known as the “iron plate magician,” has also left a mark on Hong Kong’s metaphysical circles. Dong Mujie’s influence in the 1980s and 1990s was substantial, with numerous celebrities seeking his guidance. There were even rumors of his involvement in approving orders for Zhou Enlai.
As the investment banking sector in Hong Kong faces uncertainty amid economic challenges, the landscape of the industry is poised for significant changes in the upcoming months.
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‘Banks, ready with 1.4 billion to promote nearshoring’
The bank is ready with 1.4 trillion pesos to lend and promote the nearshoringassured the president of the Association of Banks of Mexico (ABM), Julio Carranza Bolívar.
Within the framework of the 87 Banking Convention, which starts this Thursday in the port of Acapulco, Guerrero, Carranza Bolívar pointed out that the business of banks is to lend money, but they have to be sure of who and how they are going to recover it.
“We need to ensure that we are going to recover it, because the money is not ours, we are not risking our money, it belongs to the savers and that is very important to understand clearly.”
In an interview with this newspaper, the leader of the bankers highlighted the importance of banking regulation so as not to endanger the resources of financial institutions.
He highlighted that one of the country’s challenges is that of 4.8 units of small and medium-sized businesses, 3 million are informal and this is perhaps one of the main challenges for the country, where it is necessary to work together between banks and the Government.
He considered the need to create an environment of financial education that builds confidence for SMEs, but we must also have guarantee programs with the development banks to remove millions of small firms from informality and see what growth is expected. can get.
He explained that the companies that take credits Banking companies that are in formality can invest seven times more, generate six times more income, produce five times more manufacturing and achieve four times more jobs.
Julio Carranza Bolivarwho is president of BanCoppel, explained that this year when they will have the presidential candidates at their convention, they will ask them not to change the rules for banking, and that the rule of law in Mexico be taken care of and that trust and certainty be given to that investment is attracted to the country.
He emphasized that they will also ask the candidates for the Presidency of the Republic, strengthen investments in infrastructure in the coming years, such as electrical energy, which is required by firms the size of the car manufacturer Tesla.
He indicated that the federal work will be essential for the relocation and exemplified that in the electric car plant that Elon Musk plans in Monterrey, with an investment of 10 billion dollars, schools, roads, electricity will be needed, so there SMEs can be included and the authorities have to work hand in hand with the banks.
Carranza Bolívar assured that bankers arrive at their Convention optimistic, although there are aspects such as inflation, rates and the exchange rate on the radar, “we have to remember that we come from a pandemic that caused one of the worst crises worldwide and that brutally triggered inflation, supply chains were cut and this caused product prices to skyrocket.”
“I think we have made great progress… we come from inflation that reached almost 8% and today it has been going down a lot.”
He recognized that the danger at this time is underlying inflation and it is the one that must be taken care of that can be lowered further.
He projected that the country will grow between 2.7% and 2.8% and if we do the job well we can reach 3%. “Another of the important challenges this year is the landing of the deficit… it is going to grow very significantly and the Government has said that this year it will finish its priority works and then it should be a non-recurring expense.”
Carranza stated that it is another of the challenges that Mexico has that the priority projects (Mayan Train, Dos Bocas) “really land this year and do not carry a programmed expense for the following years to come.”
The president of the ABM emphasized that the Convention was decided to be held in Acapulco to support the port after the devastation left by the passage of Hurricane Otis.
“Here in Acapulco we have held 40 of the 87 Banking Conventions… and we understand that Acapulco needs us, that is why we decided to stay here and we will have an important event where everything is ready to receive all the attendees we expect.” /
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Peso loses after fears of escalation in the Middle East
Mexico City. The Mexican peso depreciated more strongly this Friday than other global currencies, shaping up to culminate a week of heavy losses, following news of an Israeli attack on Iranian soil that prompted investors to get rid of risky assets.
The local currency MXN=, one of the most liquid among emerging markets, was trading at 17.2380 per dollar, with a depreciation of 0.95 percent compared to the reference price of Reuters on Thursday, moving away from its strongest level in almost nine years of 16.2559 units, which it reached last week.
“The feeling is nervous, without a doubt there is a lot of tension,” he told Reuters Jacobo Rodríguez, financial specialist at the Roga Capital firm.
The Israeli onslaught triggered an abrupt collapse of the peso of almost 5 percent to 17.9040 units in its operations in Asia on Thursday night, but losses in the markets softened after Tehran minimized the impact of the attack and said it had no plans for immediate retaliation.
Domestically, the currency found support in a report that showed retail sales grew in February after three months of declines, supporting the argument that the economy’s progress could allow the central bank to maintain its restrictive monetary policy, one of The factors behind peso strength.
Even so, the currency added a weekly decline of 3.7 percent, its worst performance since October 2023, and analysts agreed that in the short term investors will continue to be very attentive to tensions in the Middle East.
“This weekend will be very relevant to see how this geopolitical conflict evolves,” Rodríguez added.
According to the Actinver firm, a worsening of tensions would exacerbate volatility and the search for safety in instruments such as the dollar, Treasury bonds and gold. On the contrary, if the situation does not escalate, the peso would stabilize at levels around 17.00-17.30 per dollar.
The Mexican Stock Exchange (BMV) advanced marginally in its first negotiations this Friday.
The leading index S&P/BMV IPC .MXX, which groups together the most traded shares in the domestic market, rose a slight 0.02 percent to 55,750.79 points, although shortly before it lost 0.29 percent in a market also with its sights set in the first quarter corporate earnings season.
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– 2024-04-23 03:49:57
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