UBS Doubles China Headcount Early
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UBS shows no sign of slowing down its mainland China expansion plans despite an ongoing coronavirus outbreak, having met its target set in 2016 to double headcount to 1,200 ahead of schedule.
UBS group chief executive Sergio Ermotti said in 2016 that the bank would double its China headcount in within five years to tap into the gargantuan domestic financial industry which is undergoing a historic transition to allow greater foreign ownership.
Sources familiar with the matter said that UBS had already met the target to overall double staff size from 2016’s 600 to 1,200 ahead of its 2022 plan.
The bank remains committed to wealth management in China despite the ongoing outbreak,, adding that business was largely unaffected with the exception of deferring non-critical travel. For staff that must enter the mainland, the bank has asked that they stay home for a 14-day period afterward before returning to office – the widely used standard to determine if one has been infected by the deadly virus.
A spokesperson for the bank declined to comment on the matter.
Even with its current scale, the bank’s hiring spree in mainland China is unlikely to end soon. UBS’s majority-owned investment banking joint venture is also accelerating growth with plans to double its current headcount of around 400 in three to four years, in addition to pursuing full ownership by 2020-end.
Overall, our plan is to steadily grow China onshore headcount, but we are not just going to compete on size,» said David Chin, APAC head of investment banking and China country head at UBS, to reporters in December last year, placing emphasis on the derivatives business.
Chinese regulators announced last year that it would scrap foreign ownership limits this year in futures, securities, and mutual fund companies. Global financial institutions including J.P. Morgan, Goldman Sachs and BlackRock are vying for a piece of mainland China’s financial industry as the country undergoes a landmark opening of its $45 trillion market.
Questions & Answers
Q.What was the initial goal for UBS's China headcount expansion and when was it expected to be met?
What was the initial goal for UBS's China headcount expansion and when was it expected to be met?
UBS group chief executive Sergio Ermotti stated in 2016 that the bank aimed to double its China headcount within five years. This target was to be met by 2022, increasing staff from 600 to 1,200 people.
Q.How is UBS's majority-owned investment banking joint venture expanding in mainland China?
How is UBS's majority-owned investment banking joint venture expanding in mainland China?
The investment banking joint venture plans to double its current headcount of around 400 within three to four years. It is also pursuing full ownership by the end of 2020, in line with broader regulatory changes.
Q.What measures has UBS implemented for staff travelling to mainland China due to the coronavirus outbreak?
What measures has UBS implemented for staff travelling to mainland China due to the coronavirus outbreak?
For staff who must enter mainland China, the bank requires them to stay home for a 14-day period after their return. This is a standard measure to monitor for potential coronavirus infection before they return to the office.
Q.Which specific business areas did David Chin highlight as important for UBS's growth in China?
Which specific business areas did David Chin highlight as important for UBS's growth in China?
David Chin, APAC head of investment banking and China country head at UBS, emphasised the derivatives business when discussing the bank's strategy. He indicated a steady growth in China onshore headcount but not just competing on size.
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