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July 10, 2020

Credit Suisse to slash 50% of jobs at mainland China investment banking arm

Swiss private banking giant Credit Suisse is reportedly planning to lay off half of the employees at its investment banking arm in mainland China, media firm Caixin has reported.

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The report comes barely a few weeks after the Swiss group concluded the deal to acquire a majority stake in its Chinese securities joint venture (JV).

The revamp initiated by the group included setting up a new management team. The company appointed veteran investment banker Janice Hu as the head of the majority-owned JV Credit Suisse Founder Securities (CSFS).

This position was formerly helmed by Gao Li.

CSFS employed 154 people as of the end of 2019, of which, 85 were housed in the investment banking division.

As a part of the new retrenchment plans, the JV will lay off half of the investment banking staff.

Caixin’s report added that Credit Suisse will “probably parachute in staff from its Hong Kong operations to fill some of the vacancies.”

Following the major overhaul, CSFS is also expected to be renamed as Credit Suisse Securities.

Last year, the JV reported suffered a net loss of CNY41.8m ($6m) as against CNY35.5m ($5.1m) loss in 2018.

The losses were attributed to the regulatory issue faced by the JV and financial problems faced by Peking University Founder Group, the parent company of Founder Securities.

In April, the Swiss wealth manager secured the nod of the China Securities Regulatory Commission (CSRC) to raise its holding in its China JV Credit Suisse Founder Securities (CSFS) to 51% from 33.3%.

Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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