Credit Suisse has reportedly scrapped its entire wealth management team in mainland China after its new parent UBS determined there was a mismatch in business models.
At least 20 relationship managers and investment consultants from Credit Suisse's wealth management team in mainland China have been dismissed, according to a «Bloomberg» citing unnamed sources.
Amongst those dismissed were Wang Jing, CEO of Credit Suisse’s securities venture and former private banking head of China Merchants Bank. Some support roles were also affected and the division previously had around 40 staff at one point.
Model Mismatch
The onshore job cuts started in October 2023 after new parent UBS saw Credit Suisse’s strategy of selling wealth products via bank branches as incompatible with its own business model, the report added.
Meanwhile, Credit Suisse is still trying to find a buyer for its securities unit in China due to local rules that don’t allow ownership of two licenses for the same business. UBS currently holds one such license and it has not yet merged with Credit Suisse’s Chinese entities.
