UBS slashes 70% of Credit Suisse researchers in Hong Kong-sources

UBS slashes 70% of Credit Suisse researchers in Hong Kong-sources

UBS Absorbs Credit Suisse’s Securities Research Unit in Hong Kong

Image source: Reuters

In a move towards integration, UBS (UBSG.S) has absorbed the securities research unit of Credit Suisse in Hong Kong, resulting in a substantial reduction in staff headcount. This merger, arranged earlier this year by Swiss authorities to prevent the collapse of Credit Suisse, marks the largest bank merger since the 2008 global financial crisis.

The integration process between UBS and Credit Suisse has led UBS to incorporate Credit Suisse’s securities research service into its own research operations. As part of this process, UBS has made significant staff reductions in Hong Kong. According to sources with direct knowledge of the matter, around 70% of the Hong Kong-based staff headcount at Credit Suisse’s securities research unit has been cut.

Notably, more than 15 equity researchers were recently informed about the impending layoffs. However, UBS plans to retain less than 10 researchers who specialize in Hong Kong and China equities. This strategic move aligns with UBS’s goal of consolidating its research capabilities and streamlining operations.

The termination of the Asia Pacific equities strategy coverage by Credit Suisse further underscores the impact of these layoffs. In a client note reviewed by ANBLE, it was revealed that as a consequence of the staff reductions, Credit Suisse discontinued the coverage of Asia Pacific equities strategy.

However, amidst this reorganization, UBS has attracted top talent from Credit Suisse. Noteworthy additions to UBS’s team include two former managing directors from Credit Suisse, Charles Zhou and Kenneth Fong, who specialized in China financials and China Internet, respectively. Additionally, these new recruits will be bringing along some junior researchers from Credit Suisse, enhancing the depth and expertise of UBS’s research capabilities in the region.

The merger between UBS and Credit Suisse is significant, as it marks the first-ever merger of two globally important banks. It comes after Credit Suisse faced years of scandals and losses, leading to its rescue earlier this year. UBS CEO Sergio Ermotti has expressed positivity about the merger, highlighting the momentum and the combined $5.5 trillion in assets that the bank now manages.

This integration between UBS and Credit Suisse not only strengthens UBS’s position in the market but also signals the determination of Swiss authorities to ensure the stability of their banking system. As both banks work together to navigate the challenges and opportunities that lie ahead, their combined expertise and resources will undoubtedly contribute to the growth and development of their clients and stakeholders.

UBS’ takeover of Credit Suisse’s securities research unit in Hong Kong is just one step in their ongoing integration. As the banking giants continue their journey of consolidation, they will likely unleash a variety of synergies and innovations that will benefit not only their shareholders but also the broader financial ecosystem.

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