Swiss banks Credit Suisse Group AG and UBS Group AG are moving a number of employees to mainland China from Hong Kong after Beijing eased restrictions on overseas financial companies.
Credit Suisse has recently relocated three directors and four lower-ranking employees, Bloomberg writes, citing knowledgeable sources.
UBS is in the process of transferring several managing directors to China, but a decision has yet to be made, sources familiar with the discussions said.
The presence of employees in Hong Kong, which has long been a kind of bridge between the West and China, is becoming less significant amid the opening of the Chinese market, while strong political pressure from Beijing weakened the attractiveness of the city, writes Bloomberg.
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The relocation of employees is also driven in part by concerns about continued travel restrictions to and from Hong Kong, making it difficult to close deals in China.
Competition in Beijing is growing after China last year allowed overseas companies to fully own their securities businesses.
Credit Suisse and UBS, as well as American competitors including Goldman Sachs Group Inc. and JPMorgan Chase & Co., are expanding their presence in the PRC.
UBS and Credit Suisse are making ambitious plans to expand their business in the country.
UBS at the end of 2018 became the first global investment bank to gain control of a securities joint venture in China.
The bank plans to double its headcount in China and is working to develop its infrastructure and relocate staff. UBS became the third largest bank in China in the volume of consulting in the field of mergers and acquisitions in China over the past 12 months after CICC and Goldman Sachs.