Several international banks, including Citigroup (C.N) and Standard Chartered Bank (STAN.L), have asked private bankers to postpone or reconsider plans to travel to China. Before the Chinese authorities stopped a UBS employee (UBSG.S) from China.
BNPP. PA and JPM. N. also asked private banking staff to reconsider travel plans to China after Chinese authorities prevented UBS employees from leaving the country, two people familiar with the situation said.
Sponsor
Another person familiar with the situation told Reuters that Switzerland's BAER. S has asked employees to be cautious about travel plans to China. Baosheng Group manages assets worth up to US $390 billion worldwide.
The UBS employee, a customer relationship manager at UBS's wealth management unit in Singapore, was asked by Chinese authorities last week to postpone leaving Beijing to stay in China and to meet with local officials this week. Her passport was not confiscated.
The purpose of meeting with the Chinese authorities is not clear. UBS did not comment on the matter. But the uncertainty has led UBS and several banks to ask their private bankers to seriously consider plans to travel to China, according to sources.
Their caution underlines the risks faced by private banks around the world in pursuit of China, the world's largest wealth management business opportunity.
The booming technology industry has created millionaires and billionaires, and China has become the biggest driver of growth in Asia's financial services and a must for private banks around the world.
But China's financial sector is tightly regulated, and the Chinese government is trying to reduce debt levels and curb capital outflows to support the renminbi, meaning there is little room for industry to make mistakes.
Hot Model No.: