UBS to target wealthy Chinese with new branch in Shanghai
(17 July 2015 – China) UBS Group AG is pursuing plans to open a private banking branch for the wealthy in Shanghai this year.
UBS Group head of wealth management, Asia Pacific, Kathryn Shih said the Swiss bank sees huge potential for its private banking business in China, encouraged by government measures to open up the financial industry.
Building a strong franchise in China is a priority as the world’s largest money manager to the rich endeavours to raise its profile.
“We need to get a foothold there first,” she told Bloomberg from Hong Kong.
“It’s really to establish our presence, establish our brand in China.”
“There is a lot happening in China to deregulate it,” Shih said.
“Definitely the market of the future is China.”
UBS is a leader in the Asia Pacific region, but still regarded a relative newcomer in China, the bank employs about 2700 people in its Asia Pacific wealth management unit.
The bank currently has offices in three Chinese locations; Guangzhou, Shanghai and Beijing as well as a store-front operation in the capital.
Shih said the branch in Shanghai would also be on the ground floor.
Having the UBS brand visible at street level demonstrates UBS’s “commitment in expanding its presence in China and broadening its products and services to meet the needs of clients,” she said.
The wealth management business in Asia is growing at about 7 percent to 8 percent annually in terms of assets under management.
UBS is targeting as much as twice that rate, according to Shih.
UBS is the biggest private bank in Asia with US$272 billion (A$364 billion) in assets under management, according to Asian Private Banker.
Citigroup Inc. comes second with US$255 billion, ahead of Credit Suisse Group AG with US$154 billion.
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