Bloomberg reported on the 21st that many of the global investment banks operating in China struggled to generate profits last year, recording net losses or barely avoiding losses.
According to the report, major investment banks operating in China posted an average net loss of 308 million yuan in China last year.
In particular, U.S.-based investment bank JP Morgan posted sales of 212 million yuan, but lost 178 million yuan as its operating cost reached 383 million yuan.
Japan’s Nomura deficit stood at 69 million yuan, up from 54 million yuan the previous year.
British HSBC posted a net loss of 135 million yuan, down from 178 million yuan the previous year, but still posted a significant deficit.
However, although Credit Suisse made a net profit of 11 million yuan and Morgan Stanley made 1.4 million yuan, respectively, the amount of profit was still insignificant.
However, Swiss UBS showed a clear profit growth thanks to commission income from the investment banking sector, with net profit in China reaching 63 million yuan, six times higher than the previous year.
Goldman Sachs did not disclose its performance in China last year.
Bloomberg added that although global investment banks have increased their sales in China and some have succeeded in converting to surplus, it still takes a lot of time and investment to achieve meaningful profits, China’s investment bank earned 24.4 billion yuan in its country last year.
