For once both of the major Swiss banks are in agreement: Amid a steep equity market drop and indications of a longer economic slowdown in China, the Credit Suisse CEO has echoed the outlook of his strongest rival.
Credit Suisse CEO Tidjane Thiam spent time in Asia’s largest country after graduation, as one of the outstanding students of his year he lived for several months in Beijing in the mid 1980’s and so knows how far China has come from those days.
«There will be growing pains, yes they’re changing their model from export-led capital intensive growth to consumerism, but I think they’ll manage,» Thiam said at a conference in Paris on Tuesday, when addressing an audience including Bank of England Governor Mark Carney and Bundesbank President Jens Weidmann.
Knock on Effect Across Global Markets
Thiam’s remarks come after UBS CEO Sergio Ermotti said in an interview in Shanghai earlier this week that «China is a great opportunity, like it has been for the last 20 years.» Switzerland’s largest bank also announced plans to double its staff in the country in five years.
The first few weeks of 2016 have seen Chinese stock markets along with the Remninbi fluctuate wildly after more negative economic numbers were released and a clumsy attempt at calibrating the equity market was withdrawn.
The repercussions have led to a knock on effect across global markets and also pared the prices of the main Swiss banks.
