Credit Suisse to double China force in 5 years
Credit Suisse Group AG plans to double its headcount in China over five years as the firm accelerates its pursuit of the nation’s wealthy, seeking to move past a scandal that’s engulfed oncefavored client and Luckin Coffee inc. founder Lu Zhengyao.
the bank has largely normalized approvals for Chinese companies, ending the increased scrutiny on loans that followed allegations of fabricated earnings at Luckin and a slowdown to weigh the impact of Covid-19. Credit Suisse will add to its China workforce as it targets a 100-percent increase in revenue there, Asia Chief executive Officer Helman Sitohang said in an interview. its China securities venture had 154 staff at the end of last year, and the lender also offers financing, trading, wealth and asset management on the mainland.
Much of the firm’s build-out will focus on expanding advisory and investment banking services for the ballooning ranks of China’s rich. Sitohang’s plans are key to Credit Suisse meeting its goal of doubling the contribution to revenue growth that comes from ultra high net worth strategic clients over the next three years. Separately, the lender has embarked on a wide-ranging assessment of risk controls following a series of deals linked to troubled companies including Luckin.
“China is our strongest focus when it comes to headcount, and infrastructure growth compared to any country in the world,” Sitohang said. “the worst of Covid’s impact on the region’s business activity is behind us,” he said, referring to Asia.
Asia’s largest economy has the most millionaires after the US and its financial opening this year has presented global banks and asset managers with an unmatched opportunity for expansion. Credit Suisse wants Asia to make up 25 percent of group revenue in a couple of years, from 17.5 percent now, people familiar with the matter said, declining to be named discussing internal matters.
the downfall of Starbucks Corp. rival Luckin and its billionaire founder blindsided Credit Suisse and other lenders, who are fighting to recoup losses on more than $500 million in margin loans. the Swiss bank, the lead underwriter for Luckin’s public offering, launched an internal review though Chief executive Officer thomas Gottstein has said it will continue to target China’s wealthy entrepreneurs. Bloomberg News