UBS: China) Limited launches foreign exchange and interest rate swap business

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Shanghai, February 22, 2022 – UBS (China) Limited (UBSCL), the wholly-owned banking subsidiary of UBS in China, is pleased to announce the creation of a new team to provide targeted hedging of interest rate-linked swap derivatives foreign exchange and interest rates in the Chinese financial institutions market. The new team will take full advantage of UBS’s leading position in the global derivatives market and in particular expand our offering to better meet the needs of domestic financial institutions.

David CHIN, Head of Asia-Pacific Investment Banking and Country Head China, UBSsaid: “China is a key market for UBS and we are committed to continuing our strategic investments. Leveraging 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 customers.”

“I am very pleased that UBSCL, our leading wealth management platform in China, is expanding its offering to better meet the needs of domestic financial institutions through further expansion of our services,” said Marina LUI, President of UBSCL and Head of China at UBS Wealth Management.

Within the local derivatives legal framework, UBSCL will provide structured solutions to local financial institutions to hedge their foreign currency and interest rate exposures, thereby properly managing their risk exposures. The scope will cover the seven currencies most commonly traded in the market (i.e. US Dollar, Euro, British Pound, Yen, Australian Dollar, Swiss Franc and Canadian Dollar ). It will also cover linked interest rates, which include major currency benchmark interest rates that are traded in the market, such as the fixed forward swap agreement (CMS) rate in US dollars.

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 leverage our global expertise for more business opportunities.”

The use of derivatives in China has grown rapidly in recent years, but there is still a lot of potential for their future adoption.

“In 2021, China’s interbank OTC derivatives trading volume reached RMB 158.7 trillion, up 15.6% year-on-year, accounting for the largest share of the total derivatives market. OTC derivatives 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 Chinese Global Markets at UBS.

To note: 1 based on UBS estimates.

UBS provides advice and financial solutions to high net worth, institutional and corporate clients worldwide, as well as to private clients in Switzerland. UBS is the largest truly global wealth manager and one of Switzerland’s leading retail and business banks, with a broad-based, diversified global asset manager and focused investment bank. The bank focuses on businesses that have a strong competitive position in their target markets, are capital efficient, and have attractive long-term structural growth or profitability prospects.

UBS is present in all the major financial centers of the world. It has offices in more than 50 regions and sites, with approximately 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 worldwide. 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 that enables it to develop its core businesses of wealth management, asset management and investment banking. The creation of UBS Securities, 51% owned by UBS AG, represents the first time that a foreign entity has been permitted to invest directly in a fully licensed securities firm. UBS Securities owns 100% of the capital of UBS Futures Co. Limited. UBS (China) Limited is the wholly foreign-owned bank that focuses 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 a maximum participation of 49%. UBS Asset Management (China) Limited in Beijing provides advisory services, while UBS Asset Management (Shanghai) Ltd offers private funds/pools for onshore fixed income, equities, FOFs and private multi- assets with a private fund management license. UBS Business Solutions (China) Co., Ltd provides solutions to all UBS businesses worldwide.

About UBS (China) Limited

UBS (China) Limited is a wholly owned subsidiary of UBS AG. Formerly known as UBS AG Beijing Branch (which was established in 2004), it was converted to a locally incorporated entity following the approval of the former China Banking Regulatory Commission in March 2012. Its main activities include wealth management and interbank activities (including foreign exchange, Rates and Credit and Corporate and Institutional Customers). Based in Beijing, the entity has established a sub-branch in Beijing and a branch in Shanghai.

Media contacts

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Joco Hu:
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Eva Yang:
+8621 2029 5262
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