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August 17, 2022

Credit Suisse sees flurry of senior executives leave China operations

Many senior executives have recently quit Credit Suisse Group’s securities venture division in China, reported Bloomberg citing sources familiar with the development.

The departures have led to further delay in approvals for the Swiss bank’s several operations in China.

In the last few months, the bank witnessed the exits of around half of its senior management employees including that of CFO Annie Qiu, head of compliance Xu Yang, and chief information officer Larry Tung.

Following the departures, China Securities Regulatory Commission (CSRC) has informed Credit Suisse that it would resume visiting any sites for scrutiny only after the bank refills those roles, one of the sources told Bloomberg.

The regulatory scrutiny is the last phase that is required for the bank to commence the development of its wealth management activities onshore.

The inspection is also required to enhance the lender’s equities trading businesses outside the city of Shenzhen.

The setback comes at a time when Credit Suisse is facing several other controversies that resulted into the loss of billions of dollars, prompting a strategic evaluation of its investment arm as well as exit of resources and laying off thousands of employees.

To expand its effort to serve the wealthy nationals and the increasing entrepreneur population in China, Credit Suisse aims to hire three times more than its current workforce in the country.

With the new hires, the bank also sought to gain command over its Chines securities venture.  

The news agency stated that a spokeswoman at Credit Suisse refused to give any insight on the matter. Representatives from CSRC also didn’t make any comment regarding the issue.

Nearly two years back, Credit Suisse secured approval to manage its securities venture. However, the lender is yet to receive consent to execute its onshore extension.

As per the sources, Credit Suisse intends to name Wang Jing as CEO for its securities venture after the former CEO Tim Tu had stepped down in April this year.

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