Morgan Stanley cuts 9% of China fund unit staff amid market rout, sources say

Morgan Stanley has laid off about 9% of its staff at its asset management business unit in China, two people with direct knowledge of the matter said, as the country's spiralling stock market dampens prospects for its $3.8 trillion fund sector. Morgan Stanley Investment Management China started reducing headcount in December and the move has impacted about 15 employees, the people said on condition of anonymity as they were not authorised to speak to the media. This would be the first time Morgan Stanley has cut staff at the China fund unit since it bought out its local partner's 36% stake in the loss-making business for about $54 million in 2023.