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UBS
Group AG has put off one of its best economists after a comment that it had made earlier in the week had sparked fury among Chinese securities professionals.
Paul Donovan, chief economist at UBS Global Wealth Management in London, made the remark in a podcast earlier this week in a discussion of rising consumer prices in China and attributed some of this increase to sick pigs , evoking the impact of African swine fever on pork prices in the country.
"Does it matter? It does not matter if you are a Chinese pig. It's important if you like to eat pork in China. It does not really matter to the rest of the world, "he said in a podcast, adding that China does not export much of the food it produces. The comments were also included in a summary of Mr. Donovan's podcast sent by email to the media and UBS customers on Wednesday.
Although pork is widely consumed in China, calling someone "a pig" in the country is pejorative because it evokes laziness and stupidity.
UBS and Donovan apologized for his comments the next day and said the podcast had been removed from circulation. "I apologize without reservation for any misunderstanding caused by my innocent remarks," Donovan said on Thursday, adding that he had made the remarks in the context of rising pork prices. Some have also interpreted his commentary as a reference to sick animals and not as a statement about a person.
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Almost everyone I know who has read this comment is offended.
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Mr Donovan, who has been with UBS since 1992, did not respond to a request for comment. Through the intermediary of a UBS spokesman, Mr. Donovan declined to comment on the bank's request to take a leave.
In an open letter dated Thursday, addressed to the UBS board of directors by the Chinese Securities Association of Hong Kong, the firm asked the company to fire Mr. Donovan. She also demanded a public apology and a promise that such events would not happen again. The group is chaired by Lin Yong, general manager of Haitong International. He represents the branches of Chinese stockbrokers in Hong Kong.
Thursday night, Lu Ying, director of research at Haitong Securities, the third Chinese intermediary in financial assets, said in an article published on the Chinese social network WeChat that the international branch of the company had interrupted "any cooperation with UBS". result of the comment. She also urged others to boycott the institution.
"The action speaks louder than the words," Ms. Lu said in her message. By late morning Friday, the post had been removed, according to a person close to Ms. Lu. We could not reach Ms. Lu for comments.
A spokeswoman for Haiti International confirmed Friday that the company had "suspended all its activities with UBS".
We do not know how many Haitong deals with UBS. According to the Chinese company's website, the investment banking division of Haïtong was a financial advisor to UBS Global Asset Management in connection with the acquisition of an energy distributor in Portugal earlier this year.
A spokesman for UBS declined to comment on Haitong.
Mr. Donovan's commentary also sparked a debate among Chinese finance professionals about
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whether the phrasing should be interpreted as racist.
"Almost all the people I've ever read who have read this comment are offended," wrote Hao Hong, head of research at Bocom International, a subsidiary of Bank of Communications Co., the company's chief executive. one of the largest banks in China.
On Friday, the Securities Association of China issued a statement criticizing UBS and Mr Donovan, calling it "an unwelcome person". She advised its members, including hundreds of Chinese stockbrokers, not to give their opinion or invite them to their events. .
The group also released a new UBS apology letter dated Friday. In this document, the bank stated that it was "deeply sorry" about her remarks and that she did not intend to offend the Chinese. UBS also announced that it would take steps to raise awareness and train its staff on issues of sensitivity to other crops and would take a closer look at the reports before they are published.
Last year, UBS was the first foreign bank to obtain approval from Chinese regulators to become the majority owner of a national brokerage firm. Since then, the Swiss bank has increased to 51% its stake in the joint venture UBS Securities Co. based in Beijing. She has added staff to this company, which is authorized to manage securities and debt offerings as well as to provide asset management, trading, research and other services. services in the country.
Zhou Wei and Brian Blackstone contributed to this article.
Write to Shen Hong at [email protected] and Mike Bird at [email protected]
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