Swiss banking giant UBS is looking to sell the Chinese securities business of Credit Suisse, but few potential buyers are showing interest. Amid geopolitical tensions and increasing regulatory challenges, international banks in China are facing difficult conditions. UBS, which has been building an investment banking business in China for nearly two decades, is now trying to sell one of its two platforms in the country.
Following the emergency takeover of Credit Suisse last year, UBS now owns two such platforms. However, due to regulatory reasons, UBS must divest one of its divisions in China. Currently, there is a non-binding offer for the investment banking unit of Credit Suisse, but the valuation is below original expectations, highlighting the Swiss bank’s difficulty in achieving a fair price.
The company founded by US billionaire Kenneth “Ken” Griffin, Citadel, has reportedly made a bid of $280 million for Credit Suisse’s securities business. With this, Citadel aims to expand its presence on the Chinese mainland. This would be a significant step for the market maker, which currently does not have a license for domestic securities business. The granting of such licenses can take years.
The fragile economic situation in China, increasing geopolitical tensions, and rising regulatory density are limiting the ambitions of international investment banks in the country. This represents a clear departure from the previous growth dynamics. Wall Street giants such as J.P. Morgan, Goldman Sachs, and Morgan Stanley are currently revising their expansion plans in China.
Japanese Nomura and British Standard Chartered are further examples of financial companies revising their China strategies. Despite the current market weakness and the withdrawal of other international investors, Citadel evidently sees clear opportunities in China.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Asia |
| Countries | 🇨🇭 🇨🇳 🇺🇸 🇯🇵 🇬🇧 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Kenneth «Ken» Griffin |
| Companies | J.P. Morgan, Nomura, Standard Chartered, Goldman Sachs, UBS, Morgan Stanley, Citadel Securities, Credit Suisse |
| Currencies | US Dollar |
| Securities | None |
