Shanghai, 22 February 2022 – UBS (China) Limited (UBSCL), the wholly-owned bank subsidiary of UBS in China, is pleased to announce the establishment of a new team to offer focused coverage of exchange rates and interest rates linked swap derivatives in China’s financial institution market. The new team will fully leverage UBS’s leading position in the derivatives market globally and in particular broaden our offering to better meet the needs of domestic financial institutions.
David CHIN, Head of Investment Bank Asia Pacific and China Country Head, UBS, said, “China is a key market for UBS and we are committed to continue investing strategically. By tapping into our multi-entity platform in China, we have added this new business division to further strengthen our status as the go-to global bank for domestic clients.”
“I am very pleased that UBSCL, our core wealth management platform in China, is broadening its offering to better meet the needs of domestic financial institutions through further expansion of our services,” said Marina LUI, Chairman of UBSCL and China Head of UBS Wealth Management.
Under the local derivatives legal framework, UBSCL will offer structured solutions to local financial Institutions to hedge their exposures to foreign currencies and interest rates, thus well managing their risk exposures. The scope will cover the seven most commonly traded currencies in the market (i.e. US dollar, euro, pound sterling, yen, Australian dollar, Swiss franc, Canadian dollar). It will also cover linked interest rates, which includes the main foreign currency benchmark interest rates that are traded in the market, such as the US dollar fixed term swap agreement rate (CMS).
Qiong ZHANG, President of UBSCL said, “As we continue to invest in UBSCL, this new addition would allow us to better leverage our banking platform and benefit from our global expertise for more business opportunities.”
The use of derivatives in China has rapidly grown in recent years, but there remains plenty of potential for their further adoption.
“In 2021, the trading volume of China interbank OTC derivatives reached RMB 158.7 trillion, up 15.6% year-on-year, representing the most significant part of the total OTC derivatives market in China. The trading volume of exchange-traded derivatives was RMB 582.1 trillion in the same year, up 33% from 20201,” said Thomas FANG, Head of China Global Markets at UBS.
UBS provides financial advice and solutions to wealthy, institutional and corporate clients worldwide, as well as private clients in Switzerland. UBS is the largest truly global wealth manager, and a leading personal and corporate bank in Switzerland, with a large-scale and diversified global asset manager and a focused investment bank. The bank focuses on businesses that have a strong competitive position in their targeted markets, are capital efficient, and have an attractive long-term structural growth or profitability outlook.
UBS is present in all major financial centers worldwide. It has offices in more than 50 regions and locations, with about 30% of its employees working in the Americas, 30% in Switzerland, 19% in the rest of Europe, the Middle East and Africa and 21% in Asia Pacific. UBS Group AG employs more than 72,000 people around the world. Its shares are listed on the SIX Swiss Exchange and the New York Stock Exchange (NYSE).
In China, UBS has a multi-entity domestic platform which allows it to develop its core businesses – wealth management, asset management and investment bank. The establishment of UBS Securities, 51% owned by UBS AG, represents the first time that a foreign entity has been allowed to invest directly into a fully-licensed securities firm. UBS Securities holds 100% stake in UBS Futures Co. Limited. UBS (China) Limited is the wholly foreign owned bank focusing on wealth management business. UBS SDIC Fund Management Co. Ltd is a joint venture with the State Development Investment Corporation in which, for the first time, a foreign partner holds the maximum 49% equity stake. UBS Asset Management (China) Limited in Beijing is engaged in advisory services, while UBS Asset Management (Shanghai) Ltd offers private funds/mandates for onshore fixed income, equity, FOF and multi-asset private funds with Private Fund Management license. UBS Business Solutions (China) Co., Ltd provides solutions to all UBS businesses globally.
About UBS (China) Limited
UBS (China) Limited is a wholly-owned subsidiary of UBS AG. Previously known as UBS AG Beijing Branch (which was established in 2004), it was converted into a locally incorporated entity following approval by the former China Banking Regulatory Commission in March 2012. Its key businesses include Wealth Management and Interbank Business (including Foreign Exchange, Rates and Credit and Corporate and Institutional Clients). Headquartered in Beijing, the entity established a sub-branch in Beijing and a branch in Shanghai.
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