Credit Suisse becomes the latest global bank to seek full ownership of a mainland Chinese securities joint venture.
After obtaining majority ownership in April, Credit Suisse wants to further raise ownership 100 percent, according to a «Reuters» report citing the bank’s Asia Pacific chief executive Helman Sitohang, by buying the remaining stake from Founder Securities.
In addition to investment banking – Credit Suisse ranks second in M&A advisory and investment banking fees in the region last year, according to Dealogic – the Zurich-based lender will also seek to expand its private banking business.
Veteran investment banker Janice Hu was named chairwoman of the joint venture in June while ex-China Merchant private banking veteran Wang Jing was hired as the onshore head of wealth management last month.
Mainland Integration
Asia Pacific accounts for around one-fifth Credit Suisse’s overall 2019 pre-tax income with Greater China being its key market. And moving forward, it could play an even more central role in the bank’s broader strategy in the region.
«We will continue to invest across our platforms in China and closely integrate our onshore operations with our businesses in Hong Kong and across the region,» said Sitohang, adding that more hires will follow shortly.
«It is clearly about tactical hiring: We want to capture opportunities. We know exactly where these are, where we see the potential to improve, and that is what we are focused on.»
Hong Kong Hub
On Hong Kong’s future status as a financial hub, Sitohang reiterated Credit Suisse’s commitment to the city which is an «integral part of [its] footprint for China overall», adding that no outflows had been registered.
«Hong Kong has been an important hub for Credit Suisse for decades,» he said.«[And] there will be no changes to our presence.»
