Credit Suisse Group is considering an option to separate its investment banking unit in China as part of its initiative to reorganise the CS First Boston brand, Bloomberg has reported citing people privy to the development.
The move could see the Swiss bank retaining the securities and wealth unit in mainland China as well as shifting its Hong Kong team that oversees offshore deals to CS First Boston, the unnamed people told the publication.
Credit Suisse expects to escape the process of renewing a license application for the newly organised First Boston unit by keeping the domestic business within its fold.
The bank, which picked a majority stake in its Chinese joint venture around three years back, is yet to receive final approval to boost its presence in China.
Its onshore securities arm would enter into a service agreement with CS First Boston to divide their profits on deals reached in China, added one of the people.
Talks on parting the business in China is still in preliminary stage since Credit Suisse is currently trying to ink a deal to buyout its Chinese partner, according to the Bloomberg report.
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A representative for Credit Suisse refused to give any details on the matter.
The latest development comes close on the heels of a Bloomberg report that said Credit Suisse could transfer parts of its asset management business to First Boston spinoff.
The bank is also set to employ former Citigroup banker to newly launch the business.