# Swiss bank UBP returns to Chinese markets Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-09-23 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: UBP Returns to Chinese Markets After $150 Billion Assets Meta Description: Swiss private bank UBP is back in Chinese markets, making its way back to the world's second-largest economy after withdrawing last year. Find out more! URL: https://financedigest.com/swiss-bank-ubp-returns-to-chinese-marketshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-09-23t062205z1lynxmpei8m05frtroptp4global-finance-1736815162701-compressed.jpg) By Summer Zhen HONG KONG (Reuters) – Swiss private bank Union Bancaire Privée (UBP) is back in Chinese markets, its chief investment officer said, making its way back to the world’s second-largest economy after withdrawing last year. UBP has more than $150 billion of assets. It returned to [China in August after having exited all positions in Chinese equities and credit](https://www.financedigest.com/credit-agricole-launches-china-ma-and-investment-banking-business.html "Credit Agricole launches China M&A and investment banking business") by the third quarter of 2021, Norman Villamin, CIO of wealth management, told Reuters. “We went from zero to neutral,” Villamin said. While many institutional [investors have reduced exposure to China](https://www.financedigest.com/oil-steadies-after-dipping-on-china-outlook-investors-await-fed-clues.html "Oil steadies after dipping on China outlook; investors await Fed clues") since 2019 amid a regulatory crackdown on tech giants, a deterioration in Sino-U.S. relations and strict [zero-COVID policies](https://www.financedigest.com/beijing-nervously-returns-to-work-as-china-doubles-down-on-zero-covid-policy.html "Beijing nervously returns to work as China doubles down on ‘zero-COVID’ policy"), UBP is among the few that is re-allocating to the country. Villamin said UBP saw some “hope” that there would be more stimulus measures [ahead](https://www.financedigest.com/hopes-of-slowdown-in-rate-hikes-bolster-shares-ahead-of-u-s-gdp.html "Hopes of slowdown in rate hikes bolster shares ahead of U.S. GDP") of and after the Communist Party Congress in October. “If some of the [COVID restrictions start to ease](https://www.financedigest.com/oil-hits-3-week-high-as-china-eases-covid-curbs.html "Oil hits 3-week high as China eases COVID curbs"), even if it is gradual, at least we’re moving in the right direction,” Villamin said. UBP deemed an underweight [exposure in China](https://www.financedigest.com/exclusive-china-regulator-launches-new-probe-into-banks-property-loan-exposure-sources.html "Exclusive-China regulator launches new probe into banks’ property loan exposure – sources") “tactically risky”, he added. [“China has gone through a recession](https://www.financedigest.com/oil-falls-more-than-2-on-recession-and-china-covid-fears.html "Oil falls more than 2% on recession and China COVID fears"), while Europe is in the midst of recession, and the U.S. is likely [entering a recession](https://www.financedigest.com/euro-zone-likely-entering-recession-as-price-rises-hit-demand-pmi.html "Euro zone likely entering recession as price rises hit demand -PMI") in 2023,” Villamin said. UBP has however only bought China A-shares, which is the domestic sector, and is [avoiding companies that might have exposure to geopolitical issues](https://www.financedigest.com/a-taxing-issue-ten-tax-invoicing-pitfalls-that-international-businesses-must-avoid.html "A taxing issue: Ten tax invoicing pitfalls that international businesses must avoid"). Chinese markets have been facing unprecedented challenges this year, with both the CSI 300 index and Hang Seng Index down over 20% each, while [hedge funds](https://www.financedigest.com/what-is-a-hedge-fund.html "What Is A Hedge Fund") that invest in Greater China are seeing their biggest net fund outflows in at least 15 years. UBP believes China is slowly poised to recover although it will not be a smooth sailing. Some deep-seated problems, such as the [real estate](https://www.financedigest.com/gold-london-real-estate-and-the-theresa-may-effect.html "GOLD, LONDON REAL ESTATE AND THE THERESA MAY EFFECT") debt crisis, will take a long time to resolve. “We think (China’s) objective on property is to shrink the sector as a [share of the overall economy](https://www.financedigest.com/the-sharing-economy-whats-in-it-for-accountants.html "THE SHARING ECONOMY: WHAT’S IN IT FOR ACCOUNTANTS?") to wind down the amount of leverage in the sector,” said Villamin. “We don’t [see a lot of growth](https://www.financedigest.com/swedish-match-continues-to-see-strong-smoke-free-sales-growth.html "Swedish Match continues to see strong smoke-free sales growth") opportunities there. (Corrects second paragraph to [say the bank](https://www.financedigest.com/boes-bailey-says-bank-reforms-worked-but-questions-about-liquidity-buffers.html "BoE’s Bailey says bank reforms worked but questions about liquidity buffers") exited positions in all Chinese equities, not just mainland-listed equities) (Reporting by Summer Zhen; Editing by Stephen Coates) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---