SINGAPORE : Credit Suisse, which has been buffeted by a string of scandals, management changes and global strategy rejigs, is still betting big on China and plans to launch a wealth business there next year, a senior Asia executive said.
Credit Suisse's China expansion plan comes even as the bank is cutting jobs and costs elsewhere in its efforts to recover from a string of losses and scandals. In July, the Swiss bank named its asset management boss as the new CEO. Cavalli said that the bank is taking a long-term view of China, given the huge potential in selling wealth management products to the rich in the world's second-largest economy.
Chinese banks dominate the distribution of proprietary and third-party wealth products in the country where there is growing demand from high-networth individuals and the mass affluent.Though Credit Suisse's Chinese securities venture had been delayed due to many factors, including staff departures, the bank has already replaced some senior executives and was in the process of hiring more, Cavalli said.
The process for the wealth management licence would follow once the bank gets approval to take complete ownership of the securities venture.