Hong Kong’s regulators issued statements of reassurance over worries about Credit Suisse and its post-acquisition state.
The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) said that it will be business as usual today for Credit Suisse’s local unit, according to a statement, adding that it welcomed announcements by Swiss authorities on the acquisition by UBS.
«Credit Suisse’s operations in Hong Kong comprise a branch supervised by the HKMA and two licensed corporations supervised by the SFC. All of them will open for business today as usual,» the two regulators said in identical statements.
«Customers can continue to access their deposits with the branch and trading services provided by Credit Suisse for Hong Kong's stock and derivatives markets.»
Banking and Market Risks
The two regulators noted that the local banking sector and market did not have significant exposure to Credit Suisse.
Credit Suisse's Hong Kong branch housed about HK$100 billion ($12.7 billion) in assets, representing less than 0.5 percent of the total assets in the city’s banking sector. Capital and liquidity positions at locally incorporated authorized institutions remain strong.
On market risks, Credit Suisse’s licensed corporations are not among the top 10 active brokers in the equity and derivatives market. On structured products, it was the 9th largest listed issuer, as of the end of February 2023, accounting for 4 percent of total market share by value of outstanding units.
