CLSA Asia-Pacific Markets is cutting back on its hedge fund-related businesses, the investment bank says.
"In some places like Australia and China, we plan to increase our investments and staff for new services to be launched next year," C.G. Wu, China chairman and Asia vice chairman, told Reuters. "But in other areas like hedge fund-related business, we plan to shed staff due to the decline in sales from the hedge fund industry, which is facing big pressure from redemptions,"
Wu did not offer specifics on how many employees might lose their jobs.
Meanwhile, Wu said CLSA hopes to launch an onshore private equity fund in the first quarter of the new year.
"We are certainly interested in setting up an onshore renminbi fund in China, which is like a China passport for a foreign investor, allowing you to do deals more easily," Wu said. "We are considering different ways and this matter is also subject to Chinese regulators, who I think do welcome foreign investments to support the country's economic growth.”