Credit Suisse’s China joint venture, Credit Suisse Securities (China), has obtained an investment consultancy licence in China after years of waiting and experienced a huge loss in the fourth quarter of 2022


Credit Suisse in Zürich, Switzerland. (Credit: Roland zh/Wikipedia)

Swiss investment bank Credit Suisse has reportedly secured Chinese regulatory approval to launch a full-fledged wealth management business in China.

The approval follows years of waiting, and the lender experienced a huge loss, totalling $98.29bn, in the fourth quarter of 2022, reported Reuters.

Credit Suisse’s China joint venture, Credit Suisse Securities (China), has obtained an investment consultancy licence in China.

With the licence, the company is now allowed to create and distribute equity research products, along with engaging in investment advisory services.

In addition, Credit Suisse Securities received approvals for trading and an expansion of its brokerage licence, allowing it to serve clients nationwide after previously being limited to the southern city of Shenzhen.

Credit Suisse CEO Edwin Low told Reuters: “We are pleased to have received these licenses as it marks a key milestone in offering wealth management services onshore in China, which is the fastest growing wealth market in the world.”

Credit Suisse Asia Pacific wealth management head Benjamin Cavalli said: “Credit Suisse plans to double the number of relationship managers in China in 2023.”

The rise in Credit Suisse’s wealth management workforce sharply reversed with layoffs in November last year, as part of its global restructuring that involved spinoffs and job cuts.

The move affected around one-third of its China-based investment banking team and nearly half of its Hong Kong and China-based research departments said the publication.

The total assets of Credit Suisse’s wealth division reduced to CHF540.5bn from CHF742.6bn in the previous year. The bank has increased deposit rates to attract new funds.

In June 2020, Credit Suisse closed a transaction to become a majority shareholder in its China securities joint venture, Credit Suisse Founder Securities (CSFS).

The Swiss lender increased its shareholding in CSFS to 51% from the initial 33.3%.

As part of the transaction, Credit Suisse veteran banker Janice Hu has been appointed chairwoman of CSFS.