Credit Suisse Cuts IB and Research Staff in China

(Photo by Bloomberg)

[Asia Economy Reporter Jo Yujin] Global investment bank Credit Suisse is starting layoffs targeting corporate finance and research divisions in China, Bloomberg reported on the 22nd (local time).

According to the report, Credit Suisse plans to reduce its investment banking (IB) staff responsible for mergers and acquisitions (M&A) and initial public offerings (IPO) in China by about one-third, and cut research personnel by 40%.

The report stated that this decision came just two months after Credit Suisse announced it would invest $160 million (approximately 216.3 billion KRW) to expand its securities business in China.

Edwin Low, CEO, recently declared in an interview with U.S. media that "over the next five years, China and Hong Kong will surpass Southeast Asia, Australia, and India to become the largest market in the Asia-Pacific region," expressing his commitment to expanding business in China.

Credit Suisse's shift toward downsizing its China operations is due to deteriorating performance caused by increased regulatory scrutiny and sluggish transactions following COVID-19 lockdowns.

In China, following the economic paradigm shift represented by common prosperity, policy risks have emerged, significantly reducing the number of M&A and IPO deals, thereby stalling overall financial investment activities.

The stock prices of Chinese companies listed overseas plunged sharply amid growing anxiety, and multiple acquisition attempts by companies were repeatedly thwarted.

Amid this market downturn, other major IBs such as Goldman Sachs and HSBC are also reducing their Greater China operations. According to U.S. economic media CNBC, Morgan Stanley is reportedly planning significant staff cuts in China and Hong Kong as well.

This content was produced with the assistance of AI translation services.