Credit Suisse Group AG, the largest bank in Switzerland, is raising new capital for an overhaul, which would come along with an expansion in China and Hong Kong as the bank sees a strong headcount growth in Asia.
The Swiss bank’s turnaround strategy changes from investment banking to less volatile wealth management. An overhaul will see thousands of job cuts.
The bank has about $249 billion under asset management at the end of September.
Asia-Pacific is the third largest market of Credit Suisse.
Of the China expansion plans, Credit Suisse agreed with a Chinese partner on a buyout in a local securities joint venture last month, at a time when plans for its global overhaul were being deliberated internally.
“China will go through ups and downs, but we’re giving the opportunity to acquire 100% of Credit Suisse Securities with our full commitment, knowing that the China recovery may not be immediate,” Edwin Low, a chief executive of Credit Suisse, said.
“If I look at Asia Pacific headcount in the next five years, China and Hong Kong will be the biggest growth markets for us,” Low added. “It’s very clear that the market is bigger in China than it is in Southeast Asia, Australia or India.”