UBS is expanding its China onshore wealth business

Despite tough conditions in the region, the wealth and asset manager sees potential.

UBS Group aims to grow its wealth and asset management business in China, despite the slowing economy and dearth of deals that’s weighed on some Wall Street and European lenders in the country.

China is a key strategic global market and is a place where “we want to do more,” Eugene Qian, China country head for UBS told Bloomberg TV in an interview on the sidelines of the bank’s Greater China Conference in Shanghai Monday. “Particularly, we want to expand the onshore wealth and asset management platforms.”

His comments come after Credit Suisse last year dismissed its entire wealth management team in China as UBS decided not to take on the staff after the firms merged, Bloomberg has reported. US and European banks are “ring-fencing” operations in China as they try to navigate heightened tensions between the world’s two largest economies and tighter regulations.

UBS last year signed a memorandum of understanding to collaborate with Industrial & Commercial Bank of China Ltd. to serve its global and onshore clients, he said. The deal is part of a multi-decade effort to grow its presence, Qian added.

“In China it takes years to develop where we are,” he said. “It took us over three decades.”

The company has also made “good progress” in consolidating the Credit Suisse operations, leaving it well positioned to capture future opportunities, said Qian.

UBS, which has yet to merge Credit Suisse’s entities in China, needs to sell the securities venture because it already controls one in the country and can’t hold two licenses for the same business. UBS is discussing options with Chinese regulators for Credit Suisse’s onshore securities business, according to Qian.