[ad_1]
A UBS client advisor was not allowed to leave Beijing. The reasons remain nebulous. Insiders badume that the Chinese want to show the example against the outflow of money.
Livio Brandenberg
UBS in China is it in the sights of the government? (Photo: Zhang Peng / Keystone (Beijing, October 19, 2018)
We remember well: a few years ago, client advisers from Swiss banks in America were arrested or temporarily detained. The reason was the tax dispute between Switzerland and the United States. Over the weekend, a similar case has been made public, but has occurred in China. As reported by various media outlets, including the Asian media, an UBS employee was denied departure to Beijing at the end of last week. When she wanted to check in at the airport, she had received a number instead of a plane ticket to call her. On the phone, he was told that authorities from another Chinese city wanted to talk to him later that week. In addition, the Asian woman, who works in the badet management division of the big bank, has been informed that neither against her nor against UBS would be the subject of an investigation.
Rumors that the employee was arrested proved to be unfounded. According to reliable sources, the Singapore-based client advisor can travel freely in China and has never been deprived of her pbadport. UBS has not commented on the subject so far. As announced on Monday, various banks have now adjusted their travel arrangements for customer advisers vis-à-vis China (see box).
Already 3500 billionaires in China
The reason why the UBS advisor was not allowed to leave Beijing is not clear. An often-quoted explanation is that China wants to make an example of UBS. This is the offshore bank. In simple terms, in China it has been a common practice for many years to transfer funds from customers to foreign accounts – in other words, abroad – without a plausible business purpose. The crucial point: this would not really be allowed, insiders talk about a gray area. But the market is too lucrative: in no other region of the world, the number of millionaires and billionaires is growing as fast as in China. Meanwhile, there are already nearly 3,500 Chinese billionaires. According to Credit Suisse's Global Wealth Report 2018, China's wealth has increased 14-fold since 2000 to about $ 52 trillion. UBS, which holds a Chinese banking license, is the largest badet manager in Asia, according to a survey by Asian Private Banker magazine. And it's no secret that wealthy Chinese people make a fortune, especially via Hong Kong, to invest in the world. This drain is a thorn in the middle side of the empire.
Banks react
Following the complaint of an UBS employee who was not allowed to leave Beijing over the weekend, several major banks have now advised their employees against traveling to China. For example, the US institutes Citigroup and JP Morgan, the British Standard Chartered and the French BNP Paribas have asked employees to reconsider or defer their trip, according to the bank OCBC Bank of Singapore, which advised the consultants to be cautious during their travels in China. Situation of people familiar Monday at the Reuters news agency. According to media reports, Zurich private bank Julius Baer has also advised its customer advisers not to visit China at the moment. However, the bank did not want to confirm this claim because the case had no connection with Julius Baer. The large bank Credit Suisse only informs on request that it has not banned travel to China. Did not respond to a request from Vontobel. Zürcher Bank is based in Hong Kong.
Thus, Beijing could have shot a warning shot, targeting the best dog in the West, so to speak. In any case, the attention of the rest of Western financial institutions is certain for the Chinese government. It should be noted that it meets with UBS, as the Swiss bank in China enjoys a privileged position as it not only offers rich Chinese solutions abroad, but also has a significant wealth management business in China. China for many years, including Beijing and Shanghai. In contrast, most banks do not have a local branch, but advise their Chinese customers in Hong Kong or Singapore.
Source link
