HONG KONG (Reuters) – France’s BNP Paribas has cut a dozen jobs in mainland China and Hong Kong, a source with knowledge of the matter told Reuters, the latest among global banks to trim headcount amid a slowdown in dealmaking in the Chinese market.

The bank last week began notifying the impacted bankers, the majority of whom are in investment banking and corporate finance roles, according to the source, who declined to be named as the information is not public.

BNP’s mainland Hong Kong and China offices had around 100 employees working on China-related deals prior to the cut, the source added.

A company spokesperson declined to comment. Bloomberg first reported job cuts at the French bank on Wednesday.

Global investment banks have over the last two years been shrinking their staffing on China business as a slowing economy and sharper regulatory scrutiny of corporate dealmaking and fundraising dimmed the market’s revenue potential.

High hopes of China dishing out strong stimulus policies which could benefit share sales have boosted initial public offering launches, but the country’s measures so far have been weaker than anticipated.

Banks raised $41.5 billion from China equity capital markets deals in the first three quarters of 2024, a 62.5% decline from the same period last year and the lowest first three-quarter total since 2008, according to data from LSEG.

BNP worked on only one Hong Kong equities deal as a bookrunner in the first nine months this year – a $6.5 million fundraising, ranking 31st among 32 bookrunners, the data shows.

An estimated $9.1 billion worth of investment banking fees were generated in China industry-wide during the first three quarters of 2024, a 25% decline compared to the same period last year, according to LSEG.

(Reporting by Selena Li and Kane Wu; Editing by Jan Harvey)