UBS’s takeover of Credit Suisse was arranged to prevent the collapse of Credit Suisse, and it is considered the largest bank merger since the 2008 global financial crisis. As part of the integration process, UBS has absorbed Credit Suisse’s Securities Research service into its own research operations.
UBS has reportedly cut approximately 70% of the staff headcount at Credit Suisse’s securities research unit in Hong Kong. More than 15 equity researchers were notified about the layoffs, and fewer than 10 researchers focusing on Hong Kong and China equities will join the UBS team.
Following the staff layoffs, Credit Suisse terminated Asia Pacific equities strategy coverage. This move reflects the ongoing changes and adjustments in the wake of the merger.
Notably, two former Credit Suisse managing directors, Charles Zhou (head of China financials research) and Kenneth Fong (head of China Internet and Asia gaming research), are said to be among those joining UBS. They are expected to bring some junior researchers from Credit Suisse with them.
UBS, which manages $5.5 trillion in assets, expressed optimism about the merger and the momentum at the Swiss bank, according to UBS Chief Executive Sergio Ermotti.