UBS Group AG plans to set up a wholly owned mutual fund business in China, two people with direct knowledge of the matter told Reuters, as the Swiss bank seeks to expand its footprint in the country’s $3.9 trillion retail fund market, reports Reuters.
UBS aims to launch the China fund unit in about two years, the people said. The bank’s asset management arm began hiring key personnel in recent months for the planned business, including a head of the company, one of them said.
Strong impetus for the endeavour comes from the top. Ralph Hamers, UBS chief executive since November 2020, is willing to make new bets in China partly due to a success there enjoyed by the bank he previously ran, ING, said the second source. The new activity will expand a UBS presence in China that already includes a mutual fund joint venture and a private fund business.