Morgan Stanley has laid off about 9% of its staff at its asset management business unit in China, two people with direct knowledge of the matter said, as the country’s spiralling stock market dampens prospects for its $3.8 trillion fund sector, reports Reuters. Morgan Stanley Investment Management China started reducing headcount in December and the move has impacted about 15 employees, the people said on condition of anonymity as they were not authorised to speak to media.
This would be the first time Morgan Stanley has cut staff at the China fund unit since it bought out its local partner’s 36% stake in the loss-making business for about $54 million in 2023. It rebranded the unit as a wholly owned subsidiary in June.
The downsizing underscores the challenges that global financial firms, including JPMorgan and BlackRock, face in the world’s second-biggest economy as a protracted economic malaise batters markets there.