Asset manager Value Partners cuts a third of China staff in overhaul, sources say (updated)

Value Partners

29/04/2024 13:46

(adds company statement and context in paragraph 6-8)
    By Selena  Li and Xie Yu
       HONG KONG, April 29 (Reuters) - Hong Kong-listed asset
manager Value Partners Group  0806.HK  has cut about one-third
of its China staff as it looks to restructure the business to
boost profit amid weaker markets, two sources with direct
knowledge of the matter told Reuters.
    The firm laid off eight employees from its Shanghai office
recently, the sources said, where it mainly conducts onshore
private fund investments and maintains client relationship with
institutional clients.
    Six of the eight staff were notified on Monday, a separate
source said.
    The job cuts are part of a planned overhaul launched to
boost profit, the first two sources said, as shrinking assets
under management led to operating losses in 2022.
    All sources declined to be named as they are not authorised
to speak to media.
    "Given the fast evolving landscape in the asset management
industry in mainland China, we have made a decision to
streamline our onshore business operations to improve efficiency
of the business," a company spokesperson said in a statement to
Reuters, without commenting on the job cuts.  
    "We will look to foster a closer collaboration with our
strategic shareholder, as well as other distribution partners."
    Chinese brokerage GF Securities' Hong Kong business last
June acquired a 20.2% stake in Value Partners from its founding
shareholders, becoming the asset manager's only strategic
investor. 
    Assets under management fell to HK$5.6 billion as of
end-2023, a 9.4% drop from a year earlier and a 65% plunge from
HK$15 billion at end-2019, mainly due to volatile China and Hong
Kong markets where its portfolio mainly invests in.
    The company reported a HK$23 million ($2.94 million) annual
profit in 2023, bouncing back from HK$544 million loss in 2022,
its latest annual report issued earlier this month showed. 
    Last Friday, Wong Wai Man June stepped down as the chief
executive and executive director of the asset manager.
    The chief executive role will be taken up by the leadership
committee comprising of Cheah Cheng Hye and So Chun Ki Louis
while the search for a new chief is ongoing, the company said at
that time.
    ($1 = 7.8268 Hong Kong dollars)