In the Asian market, Goldman Sachs was severely defeated by CITIC Securities.

Goldman Sachs lost Investment banking leading position in Asian market, showing a global backlash of Western banks in the region.

According to Thomson Reuters / Freeman & Co’s estimation, in the Asia-Pacific market, Goldman Sachs' scale of stock market capitalization business fell to the fourth place last year from the first rank the year before.

From January to September in 2016, Goldman Sachs Asia Pacific stock market capitalization business was reduced by 73%, effectively becoming the largest decline among the top 10 underwriters in Asia-Pacific region. While CITIC Securities climbed to the top of the stock capital market rankings. Morgan Stanley and UBS ranked second and third respectively.

According to Thomson Reuters / Freeman & Co’s estimation, during the first nine months of this year, Goldman Sachs investment banking department ranked 11th with the revenue of 83.8 million US dollars, dropping out of the top 10 for the first time since 2000, whereas CITIC Securities ranked first with a revenue of $ 216 million.

The Wall Street Journal previously cited from an informed source, said that Goldman Sachs plans to layoff roughly 75% of its 300 employees in Asia. The source also disclosed that the layoffs will focus on junior positions in Hong Kong without involving Goldman Sachs in Japan and Australia's business. Some other investment banks may also be layoff their employees.

Barclays closed some of its Asian operations earlier this year and withdrew from a number of countries in the region. UBS has some vacant positions in Asia. Informed sources also told the Wall Street Journal that Bank of America Merrill Lynch will further reduce the Asian investment banking business.

The decline in Goldman's rankings suggests that Western banks' outlook for Asian markets is starting to fade. Western investment banks in China and other Asian emerging market economies to carry out business to face high costs. Headhunters told The Wall Street Journal that banks are hiring too many people in Asia and are now evaluating what businesses should be cut off.

The investment banks’ ranking has been dominated by Chinese banks, who now account for 60% of consulting fees for mergers and acquisitions and financing deals in Asia this year, reaching a record level, according to Dealogic, a research firm. None of the US or European banks were in the top six in Asia (excluding Japan and Australia).