The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
HSBC Holdings is trimming the number of bankers focused on Chinese debt issuance amid a slump in bond deals from the world’s second-largest economy.
Two vice presidents, who covered China debt markets, are leaving the firm, according to people familiar with the matter. With that the Hong Kong-based team covering Greater China debt capital markets will shrink to one managing director and five directors.
Despite the cuts, the lender maintains one of the largest China debt capital market groups among global banks. It combined the China investment grade and high-yield teams into a single unit earlier this year as deal flow from Chinese junk borrowers dried up.
The sale of Chinese high-yield bonds has evaporated as the nation’s property developers are shut out of the market amid a deepening crisis.
that’s seen mounting defaults and a mortgage boycott by home buyers protesting construction halts.
Banks have been reviewing headcount and cutting bankers in the Greater China region. UBS Group AG is letting go of half a dozen mainland China-focused employees in Hong Kong — including debt capital markets bankers.
China offshore bond sales have slumped 45% to $64 billion this year. HSBC is ranked 13th in the league tables, dropping eight spots, according to Bloomberg-compiled data. While deal flow in China has slumped, other markets such as Australia have helped to buffer the slowdown.