China

Credit Suisse Halts Mainland China Wealth Management

Credit Suisse has reportedly discontinued its wealth management operations in mainland China.

This decision follows an assessment by its new parent company, UBS, which identified a misalignment in business strategies between the two entities.

The move led to the termination of around 20 relationship managers and investment consultants from the mainland China wealth management team, as reported by sources in a Bloomberg article. This group included Wang Jing, the CEO of Credit Suisse's securities venture and former head of private banking at China Merchants Bank, along with some support staff. At its peak, this division had approximately 40 employees.

The process of downsizing began in October 2023, prompted by UBS's recognition that Credit Suisse's approach of distributing wealth products through bank branches did not align with its own operational model.

Additionally, Credit Suisse is in the process of seeking a buyer for its securities unit in China, as current regulations prohibit owning two licenses for the same type of business. UBS already possesses one such license, and the merger of its Chinese entities with those of Credit Suisse has not been completed yet.