Bank of America has reduced its Hong Kong investment banking department by cutting 16 bankers as part of a global downsizing of its dealmaking workforce, according to three sources familiar with the situation. The sources, speaking on condition of anonymity as they were not authorized to talk to the media, specified that the cuts mainly affected junior positions.
Most junior bankers were reportedly offered roles in other Bank of America departments, with one source indicating that the number of acceptances remains unclear. Bank of America declined to provide a comment on the matter.
Earlier this week, two sources informed Reuters that the U.S. lender is restructuring its investment bank worldwide, following a trend seen in similar actions at other financial institutions.
However, despite lower-than-expected deal volumes in Bank of America's domestic market in the United States during the first half of the year, Hong Kong has recently experienced a resurgence in activities within its initial public offering and additional share sale markets.
This uptick in activity has encompassed significant transactions such as the primary share sale of electric vehicle manufacturer BYD and the initial public offering of the beverage brand Mixue Group.