Bloomberg and staff reporter
Global banks could cut 10% of Chinese investment bankers in 2023 as they recalibrate their plans to take over China’s financial market, sources say. At the same time, HSBC (0005) said it would expand its private banking in the country.
In public, executives say they are for the long haul, but behind the scenes banks such as Goldman Sachs Group and UBS have dumped China-focused investment bankers.
It is estimated that 10-20% of top bankers are unlikely to receive any bonuses this year and more than half expect a record drop – which could lead to significant staff departures.
A source said banks were considering narrowing the pay gap between bankers to reduce job cuts as deals could rebound in the second half of next year.
Other sources predict that 10-15% of staff – likely the lowest ranked – will quit because of the near-zero bonus pool.
Meanwhile, HSBC said it would continue to expand its private banking business on the continent and planned to open centers in four cities within two years.
The lender first entered southwest China by launching private banking operations in Chengdu last month.
Additionally, HSBC launched a new advisory service – HSBC Prism Advisory in Asia – which combines human expertise with data analytics.
The service will first be made available to private banking clients in Hong Kong and Singapore.