Asset manager Value Partners cuts one-third of China staff in overhaul, sources say

Value Partners

29/04/2024 12:25

By Selena  Li and Xie Yu
       HONG KONG, April 29 (Reuters) - Hong Kong-listed asset
manager Value Partners Group  0806.HK  is cutting 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 told Reuters.
    The firm laid off eight employees from its Shanghai office
on Monday, the sources said, where it mainly conducts onshore
private fund investments and maintain client relationship with
institutional clients.
    The job cuts are part of a planned overhaul launched to
boost profit, the sources said, as shrinking assets under
management led to operating losses in 2022.
    Both sources declined to be named as they are not authorised
to speak to media.
    The company didn't immediately respond to Reuters request
for comments.
    Assets under management fell to HK$5.6 billion as of
end-2023, a 9.4% drop from a year ago 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)

 (Reporting by Selena Li and Xie Yu; editing by David Evans)
 ((Selena.Li@thomsonreuters.com; +852 39525868;))