KUALA LUMPUR, Aug 2 (Reuters) - Malaysia’s CIMB Group Holdings Bhd has closed its Hong Kong investment banking (IB) business, citing existing collaboration with its Hong Kong partner in the competitive North Asian market.
Jefferi Hashim, CEO of CIMB Investment Bank said on Friday that with its pan-Asian collaboration with China Galaxy International (CGI), it has recalibrated its investment banking business.
The bank said existing clients in Hong Kong will continue to be supported through the collaboration with CGI.
The bank, Malaysia’s second largest by assets, was reported to have let go of 10 investment bankers based in Hong Kong due to strong competition, leaving only one to oversee the transition, capital markets publication IFR reported.
In 2017, CIMB sold a 50% equity interest in its international brokerage business to China Galaxy Securities , which owns CGI, creating a cash equities joint venture.
The joint venture includes institutional and retail brokerage, equities research and associated securities businesses in Indonesia, Singapore, Thailand, Hong Kong, India, South Korea, UK and the U.S. (Reporting by Liz Lee; Editing by Shounak Dasgupta)