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August 29, 2022

Chinese regulator warns Credit Suisse over executives’ departure

Credit Suisse has been asked by the Chinese securities regulator to address the issue of the departure of senior executives at its securities arm, Bloomberg has reported. 

Only after the matter is resolved, the Swiss financial services group will be allowed to expand its business in mainland China. 

In the past few months, around half of senior executives at Credit Suisse’s China securities ventures have quit including CFO Annie Qiu, head of compliance Xu Yang, and chief information officer Larry Tung.

These departures led the China Securities Regulatory Commission (CSRC) to postpone on-site visits, which would have been the final step in allowing the investment bank to expand its wealth management and securities trading business in China. 

CSRC in a statement asked the Swiss bank “to make preparations for on-site inspection of new businesses in accordance with relevant regulations.” 

The development comes as the European group tries to untangle itself from scandals that have cost it billions of dollars, triggered a review of its investment banking arm and pushed it to lay off thousands of employees. 

Notably, senior executives that Credit Suisse are doubtful about the bank’s plans to expand the securities business and wealth operations in China. 

As part of the groupwide review, the lender’s long-term business in China is being reviewed. 

Top bankers including the bank’s CEO Ulrich Koerner, who took the helm recently, and Asia-Pacific head Edwin Low are set to meet in Singapore next week to discuss the bank’s future in China among other topics, the publication said citing sources. 

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