Nov 14, 2024 01:17 AM
FINANCE
BNP Paribas Cuts China Investment Banking Jobs
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In April, BNP Paribas won approval to open its own securities business on the Chinese mainland
BNP Paribas has become the latest global investment bank to scale back its China operations amid a slowdown in dealmaking, laying off nearly a dozen employees across the Chinese mainland and Hong Kong, sources told Caixin.
The French bank cut what is believed to be 11 positions in its investment banking, corporate finance, and equity capital markets divisions. The layoffs included some senior managers within BNP Paribas’ China investment banking team, according to people with knowledge of the matter.
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- BNP Paribas laid off nearly a dozen employees, about 10% of its China-related workforce, due to decreased dealmaking activity in China.
- The bank's layoffs affected investment banking, corporate finance, and equity capital markets divisions, including senior managers.
- Share sales in China and Hong Kong reached the lowest in two decades, but recent signs show improvement with major companies raising substantial funds.
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Who’s Who
- BNP Paribas
- BNP Paribas has scaled back its China operations, laying off around 11 employees in investment banking, corporate finance, and equity capital markets divisions amid a slowdown in dealmaking. This reduction affects about 10% of its China-related workforce. Despite these layoffs, BNP Paribas recently gained approval to establish a securities business on the Chinese mainland, becoming the fourth foreign institution to operate a wholly owned brokerage there.
- Morgan Stanley
- Morgan Stanley, along with other leading banks such as Citigroup, Goldman Sachs, and HSBC, has made job cuts in the Chinese mainland and Hong Kong due to a slowdown in investment banking business over the past two years. This reduction aligns with the downturn in fundraising in Hong Kong.
- Citigroup
- Citigroup has made job cuts in the Chinese mainland and Hong Kong over the past two years due to a slowdown in investment banking business as fundraising dwindled in these regions.
- Goldman Sachs
- Goldman Sachs is among several leading banks, including Morgan Stanley, Citigroup, and others, that have made job cuts in the Chinese mainland and Hong Kong over the past two years due to a slowdown in investment banking business and dwindling fundraising in Hong Kong.
- UBS
- UBS is mentioned as one of the leading banks that have made job cuts in the Chinese mainland and Hong Kong over the past two years due to a slowdown in investment banking business and dwindling fundraising in Hong Kong.
- Bank of America
- Bank of America, along with other leading banks such as Morgan Stanley, Citigroup, Goldman Sachs, UBS, and HSBC, has made job cuts in the Chinese mainland and Hong Kong over the past two years due to slow investment banking business and dwindling fundraising in Hong Kong.
- HSBC
- HSBC is undergoing a major restructuring announced in October, involving layoffs primarily among mid and senior-level management to address functional overlaps. This is part of a broader trend where numerous banks, including HSBC, have been cutting jobs in the Chinese mainland and Hong Kong due to a slowdown in investment banking business.
- Midea Group
- Midea Group Co. Ltd. is an appliance maker that conducted the largest share sale of the year in Hong Kong, raising over 35 billion yuan ($4.8 billion) in September. This reflects a positive sentiment in the market, which showed signs of reviving due to Beijing's stimulus policies.
- SF Express
- SF Express Co. Ltd., a logistics giant, recently passed its hearing with the Hong Kong exchange for a planned offering, which is anticipated to be smaller than Midea Group's recent $4.8 billion share sale. This development reflects a cautiously improving market sentiment, following Beijing's stimulus measures aimed at reviving the investment climate.
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What Happened When
- 2022：
- BNP Paribas expanded its China investment banking team.
- April 2024：
- BNP Paribas won approval to open its own securities business on the Chinese mainland.
- September 2024：
- Midea Group Co. Ltd. raised more than 35 billion yuan in the biggest share sale of the year in Hong Kong.
- October 2024：
- HSBC announced a major restructuring indicating layoffs among mid and senior-level management.
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