Credit Suisse seeking full control of China venture

Bloomberg

Credit Suisse Group AG is seeking to gain full control over its securities venture in China amid plans to double its headcount and revenue in the world’s fastest growing major economy.
The Swiss firm last year gained majority control over the venture and has been working to upgrade its infrastructure as well as moved more bankers into China, Asia Pacific Chief Executive Officer Helman Sitohang said in an interview.
“Obviously, the intent is to get to 100% as soon as possible,” he said in a Bloomberg Television interview.
Along with other major banks Credit Suisse is pushing into China as it opens its capital markets. Last year, it revealed plans to double its headcount, matching similar plans by rivals such as Goldman Sachs Group Inc. Much of the firm’s build-out will focus on expanding advisory and investment banking services for the ballooning ranks of China’s rich.
The fact that Ant Group Co.’s canceled or postponed initial public offering didn’t cause much negative reaction in the market “shows how strong the momentum is,” he said.
Some “setbacks” are part of the learning process for everybody to know how to navigate the market, Sitohang said. China is “working very hard to ensure that the market continues to be attractive,” he said.
The executive last year oversaw a 24% rise in profit to $4.5 billion in his region.
So far, the momentum from 2020 is spilling over into 2021, but it’s “obviously too early to say how the full year will pan out,” he said.
Sitohang said everyone has to be mindful that markets are now at “toppish” levels.