Morgan Stanley to trim Asia-Pacific workforce

Morgan Stanley is considering a 7 percent cut in its Asia-Pacific investment banking workforce, with China taking the biggest hit as deteriorating relations with the US and weaker economic growth curb dealmaking, people familiar with the matter said.

The bank is likely to start communicating with affected bankers as soon as this week, with more than 40 jobs at risk, including those with the capital markets unit. Other divisions may also be affected, the people said, adding a final decision on the number of job cuts hasn't been made.

Meanwhile, EY said mainland banks will be under pressure of a narrowing net interest margin for a while, after many lenders have seen their NIMs dip below the alarming 1.8 percent-level. But the NIMs could be improved with the falling saving interest rates, said the global accounting firm.