HONG Kong-listed asset manager Value Partners Group 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 (Apr 29), 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 per cent drop from a year ago and a 65 per cent plunge from HK$15 billion at end-2019, mainly due to volatile China and Hong Kong markets where its portfolio mainly invests in.

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The company reported a HK$23 million (S$4 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. REUTERS