UBS Reportedly Looking to Apply for Mutual Fund License in China

​Switzerland's biggest bank, UBS Group AG, is seeking to apply for a mutual fund license in China. According to the Wall Street Journal, sources familiar with the matter stated that UBS is in informal talks with the China Securities Regulatory Commission (CSRC) regarding its intention to apply. However, both UBS and CSRC have yet to comment on the matter.

UBS was the first foreign bank to take a majority stake in a Chinese securities joint venture back in 2018. This gave the Swiss company the opportunity to expand its business in the world's second-largest economy. Later in 2019, the rules were further relaxed when China and the US signed a landmark trade agreement that allowed investment banks, asset managers, and credit-card companies to fully own their local operations.

Following this trade agreement, other Wall Street firms such as BlackRock, Goldman Sachs, and JPMorgan have secured various licenses from Chinese regulators that enable them to grow their businesses in China. Now, UBS is also looking to apply for a mutual fund license in China. The bank plans to submit its application as soon as possible. However, no timeline has been mentioned in the report.

In other news, Fazzaco covered that UBS released its financial results for the full year and fourth quarter of 2022 at the end of January​. Despite a difficult macroeconomic and geopolitical environment, the bank showed good full-year and solid fourth-quarter results.