UBS's New-Year Approach to Wealth Management in China

Jan 9, 2024 Hubbis

UBS Group AG is planning to expand its wealth and asset management operations in China, despite the country's economic slowdown and a lack of deals that have affected some Western banks.

Eugene Qian, the China country head for UBS, emphasized the company's commitment to enhancing its onshore wealth and asset management platforms in China, a key strategic global market, reported Free Malaysia Today.

This development follows an instance where Credit Suisse dismissed its entire wealth management team in China, and UBS chose not to hire these staff members after a merger, as reported by Bloomberg.

Both US and European banks are adapting their operations in China, dealing with the challenges posed by the heightened geopolitical tensions between the world's two largest economies and stricter regulations.

In its efforts to strengthen its position in China, UBS has formed a partnership with the Industrial & Commercial Bank of China Ltd. This collaboration, part of a long-term strategy spanning several decades, aims to cater to both global and onshore clients. Qian noted that UBS has spent over thirty years building its presence in China.

Furthermore, UBS has made significant strides in integrating Credit Suisse's operations, which positions the company advantageously for future growth opportunities. However, UBS, which hasn't yet merged Credit Suisse’s entities in China, faces the necessity to divest the securities venture due to regulatory constraints preventing it from holding two licenses for the same type of business in the country.

Qian mentioned that UBS is currently in discussions with Chinese regulators regarding the future of Credit Suisse's onshore securities business.