As part of the ongoing integration of operations between the two Swiss banking giants, UBS has reduced the staff headcount at Credit Suisse's securities research unit in Hong Kong by approximately 70%.
The acquisition of Credit Suisse by UBS, marking the largest bank merger since the 2008 global financial crisis, was swiftly arranged in March of this year by Swiss authorities to prevent the potential collapse of Credit Suisse.
As a component of the integration process, UBS chose to incorporate Credit Suisse's Securities Research service into its own research operations earlier this month.
According to Reuters, over 15 equity researchers were informed about the layoffs in Hong Kong earlier this week. They also mentioned that fewer than 10 researchers who specialize in Hong Kong and China equities will be joining the UBS team.
In response to the staff layoffs, Credit Suisse ceased its Asia Pacific equities strategy coverage on Monday, as indicated in a client note sent by the bank and reviewed by Reuters.
Notably, two former managing directors from Credit Suisse, Charles Zhou, who previously led China financials, and Kenneth Fong, who formerly headed China Internet and Asia gaming research, are among those reportedly joining UBS, according to information provided by the two sources and another individual with knowledge of the matter.
Additionally, both Zhou and Fong will be accompanied by junior researchers from Credit Suisse, according to the sources. As of now, Zhou and Fong have not provided immediate responses to requests for comments.
The UBS acquisition of Credit Suisse represents the first-ever merger of two globally significant banks, with Credit Suisse having experienced several years of scandals and losses before its rescue in March.
UBS Chief Executive Sergio Ermotti expressed on Tuesday that the momentum at the Swiss bank is notably positive, especially since the merger with former rival Credit Suisse earlier this year. UBS currently manages assets worth $5.5 trillion.