UBS becomes third global bank to lose China boss this month

Bloomberg

UBS Group AG’s David Chin is stepping down as China country head, the third senior executive at a global lender in the nation to exit this month as bankers are hobbled by a strict Covid Zero strategy and a crackdown on private enterprise.
After two years in the role, Chin will be succeeded by Eugene Qian, chairman of UBS Securities Co., the lender said in an internal memo, confirming a Bloomberg News report. Chin was named the most senior executive for China in January 2020 and will remain as head of the Asia-Pacific investment bank. A spokesman in Hong Kong confirmed content of the memo.
Chin joins the chief executive officers of the mainland China securities units of JPMorgan Chase & Co. and Credit Suisse Group AG in stepping aside this month, an unprecedented run of exits that emphasise the shift in sentiment towards a market where deal-making has tumbled after a series of government crackdowns. More than two years of border controls have undermined attempts to recalibrate strategy and manage the fast-changing regulatory environment, according to people familiar said, who asked not to be identified discussing a private matter.
The exits come at a time when Wall Street banks and their European rivals have been planning to go full steam into China, efforts that are now being hurt by threats to markets and economic growth.
Based in Hong Kong, Chin oversaw UBS boosting its stake in its China securities venture
to 67% last month. Mainland China revenue for UBS more than doubled to almost $1 billion in 2021 from 2019, becoming the third biggest contributor in Asia-Pacific, displacing Australia, one of the people said. Hong Kong and Singapore remain the biggest contributors, the person said.
Shanghai-based Qian will be closer to regulators and clients on the ground in mainland China, while the shift will allow Chin to focus on expanding the Asia business and help diversify revenue to compensate for an expected slowdown in Chinese dealmaking this year, the people said.
Qian, who rejoined UBS in 2015, will report to Asia-Pacific President Edmund Koh when the appointment is effective from July 1, the memo said.
The loss of so many senior executives in critical China roles doesn’t bode well for global banks, which are fighting for local talent to expand and facing increasing geopolitical risk. Bankers have been lamenting the difficulties in expanding client coverage as weeks of quarantine and lockdowns in Shanghai hurt morale, the
people said.
The rolling Covid-19 lockdowns are making it increasingly hard for those with family living overseas.
Houston Huang stepped down earlier this month as CEO of JPMorgan Securities (China) Co. after a little more than a year on the job. He was succeeded by his deputy, Lu Fang, a former official at China’s
securities regulator.
Tim Tu, the CEO of Credit Suisse’s local securities firm, relinquished his role last week after less than two years on the job. Beijing-based Tu intends to relocate to Hong Kong, though his exact new role hasn’t been finalized, people familiar have said.