HONG KONG: Morgan Stanley and HSBC are cutting dozens of investment banking jobs in the Asia Pacific this week, sources with knowledge of the matter said, as weaker deal activities and sluggish markets in China and Hong Kong weigh on their business prospects.

Morgan Stanley is cutting at least 50 investment banking jobs in the region starting this week, three sources with knowledge of the matter said, affecting around 13% of the Wall Street bank’s Asia investment banking workforce of 400.

Layoffs at the investment banking business unit of HSBC , which makes the bulk of its revenues and profits in Asia, started on Tuesday and is expected to see the departure of around 30 dealmakers in the region this week, three separate sources said.

All of the sources declined to be named as they were not authorised to speak to media.

Morgan Stanley declined to comment on the job cuts. HSBC did not immediately respond to a Reuters query on Wednesday.

The cuts are among the largest to the two banks’ China-focused investment banking teams and follow similar measures by other banks stung by a decline in deal-making activities in China amid a slowing economy.