Credit Suisse Gets Licenses in China to Build Wealth, Brokerage

Credit Suisse Group AG has obtained licenses allowing it to launch its wealth management business in China in the first half of this year as well as expand its securities trading and research activities onshore.

(Bloomberg) — Credit Suisse Group AG has obtained licenses allowing it to launch its wealth management business in China in the first half of this year as well as expand its securities trading and research activities onshore. 

The bank received its investment consultancy, proprietary trading and nationwide brokerage licenses, according to an internal memo. A spokeswoman for the bank confirmed the contents of the memo.

The approvals mark progress for the embattled Swiss lender, which last year faced delays in getting approvals for some of its China operations after a flurry of senior management departures. In preparation for the launch of its wealth management business in China, Credit Suisse plans to double the number relationship managers onshore, according to the memo. 

“This is a milestone for Credit Suisse’s China plans as we move towards the future launch of our wealth management services in one of the fastest growing wealth markets globally,” Edwin Low, chief executive officer for Asia Pacific and Janice Hu, chief executive officer for China, said in the memo.  

The European lender has been reeling from a series of scandals that led to billions dollars of losses, spurring a strategic review of its investment bank, an exodus of talent and thousands of job cuts. The bank made deep cuts to its China workforce in November as part of the global overhaul, letting go at least a third of its investment bankers and about 40% of research staff. Carsten Stoehr, chief executive officer for Greater China, quit in December, among the most senior departures.

 

–With assistance from Zhang Dingmin.

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