We're Pushing Ahead With China Growth Plans, Says Credit Suisse – Report

Editorial Staff

2 November 2022

intends to push on with expansion in China, with the country and Hong Kong set to see the strongest pace of headcount growth in Asia, its regional chief executive has been quoted as saying.

As part of the global revamp, Credit Suisse is evaluating its presence in 13 locations in Asia-Pacific, aiming to "simplify" operations in each location, Credit Suisse's Singapore-based Asia-Pacific chief executive Edwin Low told Reuters, without elaborating on specifics.

Low added that China and Hong Kong will remain the brighter spots.

"If I look at Asia Pacific headcount in the next five years, China and Hong Kong will be the biggest growth market for us," Low was quoted as saying. "It's very clear that the market is bigger in China than it is in Southeast Asia, Australia or India."

The report noted the slowing growth in mainland China – a country still labouring under harsh zero-Covid policies.

The Zurich-listed bank recently seized the chance of buying all of its Credit Suisse Securities business in China. Like a number of its Western peers, the bank has staked some of its ambitions on success in China, notwithstanding the chill in West-Beijing relations over the past few years.

Apart from applying for a wealth licence to sell products to its private bank clients, Credit Suisse is setting up a locally-incorporated bank, which will take two to three years to build out, after which its clients can trade China-listed shares, he said.

The report noted that Credit Suisse’s Asia-Pacific business holds about $249 billion of assets under management, based on end-September data.

As reported here, the bank is restructuring and plans to raise up to SFr4.0 billion in fresh capital as it tries to become profitable again after a run of losses and mishaps.