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Banking, Capital Markets, China, Featured Work, Hong Kong, Regional Asia - Tuesday, April 10, 2012 11:35 - 0 Comments
Reality bites: the truth about investment banking in Asia
Asia is the future; that’s an article of faith in global investment banking. And there is no denying that Asia is where the growth economies are, the dynamic young populations, the most vibrant trends in trade and market development. But global bank HQs need to temper their expectations a little.
For all the promise of this region, investment bankers here face a host of challenges. Asian investment banking is unhealthily tilted towards equity capital markets, making it especially vulnerable to times – like the six months until early March – when those markets are closed. Within that, it’s far too focused on China, too. Competition from local houses is growing by the day; fees, already under pressure, are being sliced by an irksome trend of issuers putting as many as nine bookrunners on deals; and headcount costs are stubbornly high for good people at exactly the time that banks are being told by head office to slash bonuses.
See the article as it ran here: http://www.euromoney.com/Article/3005687/CurrentIssue/85141/Reality-bites-The-truth-about-investment-banking-in-Asia.html
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