Wall Street banks need to sharpen their knives in Asia

Hong Kong

IN Asia, Western banks need to understand that small is beautiful. They need to be more nimble and focused, and accept that some things are best left to the locals. They should also focus on what pays: the multinational clients that were once their top customers and the private-equity firms that provide recurring fees are a lot more loyal than the average Chinese company.

Even as many aspects of investment banking get squeezed, overall fees in the region rose thanks to yuan bond sales, which is where Chinese institutions dominate.