Swiss giant Credit Suisse has revealed plans to set up a wealth management arm in China in 2023.
Benjamin Cavalli, head of Asia Pacific wealth management, told Reuters that the country is a “long-term play for us”, rebuking rumours Credit Suisse was pulling out of China.
The bank aims to start offering its wealth services next year while it is waiting to secure full ownership of its local securities venture, which is likely to happen in Q1 2023, Cavalli said.
Credit Suisse had already increased its stake in the venture two years ago when it raised its shareholding to a controlling 51%. The bank has also hired 50 members of staff for the Chinese wealth business.
An application for a wealth management licence will be made once all the relevant approvals for the full ownership of the securities venture are complete.
At the same time, however, Reuters has reported Credit Suisse is considering cutting around 5,000 jobs as part of a cost reduction exercise.
International Adviser contacted Credit Suisse and the bank said it had not further comment on the Chinese wealth management plans, but when asked about the job cuts it said: “Credit Suisse maintains a world-class, leading investment banking franchise globally. We have said we will update on progress on our comprehensive strategy review when we announce our third quarter earnings; any reporting on potential outcomes before then is entirely speculative.”
This story was first published on International Adviser.