The Chinese market on the mainland is for banks , until today, one thing above all: a great promise for the future. Because the Chinese capital market is always closed, the money of the residents coming in hard out of the foreigners. Therefore, the music plays in the business with rich Chinese mostly in Hong Kong and Singapore.
The UBS continues to step out of their mainland presence. As the first Western institution, the big Bank will be allowed to purchase last December, a majority of the shares in the Chinese stock broker, UBS Securities, China. The brought in the big Bank, first of all, a loss of 270 million Swiss francs for the purchased shares were cheaper than the stock, which had UBS in inventory, you had to book a value correction.
Development of the participation
The UBS not to get discouraged but to continue to invest in China. "We are considering to increase the capital of UBS Securities to customers securities loans to offer," says Eugene Qian, head of UBS Securities China, in an interview. Equity is the fuel of a Bank; the more of them in the Tank, the more you can give Gas. Currently, the Chinese Broker UBS has around 230 million Swiss francs of equity. By 2021, UBS may apply the Broker completely, but according to Qian, this was not planned, necessarily, because of the Co-shareholder, the Beijing Municipal Gouvernment Group was very helpful in customer acquisition.
Want to inflate the UBS with the Expansion of the credit business of China's debt bubble? Finally, China's debt has piled up, the 300 percent of the economy correspond to performance. Qian q, "as a securities dealer, we will not go into corporate loans," he explains. "Our loan offer is aimed at wealthy private and institutional clients, such as Fund managers or hedge funds," the UBS Manager. In other words, the customer securities as security and get loans. The losses could be if the lose the collateral massively in value.
The Chinese brokers was founded in 2006, a major earnings driver for the unit. Qian estimates the revenue of the broker, with around 130 million Swiss francs per year. For comparison: In the division of Wealth Management, UBS participated in the Asia business, a total of 2.4 billion francs in investment banking, there were 2.2 billion. With assets under management of close to 360 billion francs in the Asia Region, the UBS is considered to be the market leader. According to estimates, roughly 20 percent of these funds come from Chinese customers, the exact country data to China is not a Bank, not UBS.
"rate We expect for our business in China, a double-digit growth."Eugene Qian, head of UBS Securities China
According to the Credit Suisse Wealth Report China today has 3.5 million millionaires, only in the USA there are more people with seven-figure assets. According to the report, the number of millionaires in China to 2023 is set to grow by 62 percent to 5.6 million millionaires. As China opens more and more, is also likely to increase the importance of the business on the mainland. Therefore, to establish the UBS early. "We expect our business in China, a two-digit growth rate," Qian as the target.
Qian has not the capital, strengthening of Brokers but only the Chinese customers in mind. "In the Wake of the Opening of the Chinese capital market, more and more international investors want to invest directly in China," he says. Thus, the Index provider MSCI announced the start of the month, to increase the weight on the Chinese mainland-traded shares, the so-called A-shares in its stock indices step by step.
Automated advice in planning
foreigners can trade this title in Hong Kong. Or you can use the so-called Qualified Foreign Institutional Investor Program, foreigners are allowed to trade directly in the securities of mainland China. The government has doubled the volume of the program at the beginning of the year to 300 billion dollars, UBS has a quota of 3.04 billion dollars.
in addition to the Rich UBS wants to operate in China, even the middle class. The big Bank has established a joint venture with Qianhai Financial Holdings, a company of the local government of China's counterpart to Silicon Valley. The goal: A digital, automated asset management for Affluent customers, these are customers who want to less than a million. According to Qian, the joint venture was ready to launch. (Tages-Anzeiger)
Created: 12.03.2019, 12:21 PM