Global banks registered either small profits or losses from their mainland China joint ventures, according to filings, spelling a slow start to capitalizing on the nation’s opening of its financial sector.
Six global investment banks posted a combined loss of 308 million yuan ($48 million) last year, according to filings, which included three that registered small profits and three that saw losses.
This contrasts with $24.4 billion earned from dealmaking from China’s investment banks.
Profiteers
Swiss giants UBS and Credit Suisse both saw profits, albeit in the tens of millions of dollars.
UBS’ joint venture saw profits increase six-fold to 63 million yuan and Credit Suisse’s joint venture reversed two consecutive years of losses with 11 million yuan in profits.
Morgan Stanley made 1.4 million yuan of profits, ending three consecutive years of losses.
Lossmakers
J.P. Morgan posted the greatest loss amongst global financial firms at 178 million yuan from 212 million yuan and 393 million yuan in revenue and operating charges, respectively.
Nomura saw a 69 million yuan loss at its joint venture – compared to 54 million yuan last year – primarily driven by brokerage and asset management activities in mainland China.
HSBC has been in the red every year since first reporting results in 2017 from its joint venture with Qianhai Financial Holdings, where it owns 51 percent. In 2020, it registered a 135 million yuan loss compared to a 178 million yuan loss a year earlier.
