by Xinhua writers Ren Jun and Xie Han
BEIJING, Sept. 19 (Xinhua) -- International investors are returning to the Chinese market, buoyed by proactive macroeconomic policies and rapid advances in high-tech sectors, according to Sergio Ermotti, Group CEO of Swiss banking giant UBS.
"If you look at the performance of the Chinese economy and the innovation that is coming out of China with so many successful stories, of course, the Chinese market can no longer be neglected by international investors," Ermotti told Xinhua in an exclusive interview during his recent two-day trip in Beijing.
The Swiss banker said that the rebound in investor sentiment is evident in the flow of international capital into Chinese equities. Recent IPOs of Chinese companies on the Hong Kong stock market have attracted substantial funds not only from domestic investors but also from a robust base of international investors.
Ermotti noted that the Chinese government has implemented targeted measures to stimulate the economy, while traditional industries are increasingly being complemented by remarkable contributions from innovations such as AI.
In July, UBS raised its China 2025 growth forecast by 0.7 percentage points.
"China's economy will continue to grow based on the secular trend," said Ermotti, adding that a transformation from "made in China" to "developed in China" is underway, with its growing innovation capacity reshaping wealth creation.
"I believe that the (Chinese) government still has a lot of potential measures that can be brought to the table to sustain the economy. And particularly, it's important to see consumers coming back," Ermotti said.
On operations in China, he said that UBS has maintained a strong focus on Asia and China, having been active on the Chinese mainland for over three decades.
As one of the key components of UBS in China, UBS Securities was one of the first foreign investment banks to enter the Chinese market and was registered as the first fully-licensed securities joint venture in 2006. In its latest move, UBS has increased its equity stake in UBS Securities from 67 percent to 100 percent.
"Going from a 67 percent to 100 percent control was the natural evolution of our commitment to China," said Ermotti. "This is our sign showing that we are investing in China and that we are really beefing up our capabilities."
China lifted foreign ownership caps in the securities sector in 2020, paving the way for five wholly foreign-owned securities firms, including UBS Securities, on the Chinese mainland.
"We continue to see the liberalization of the (Chinese financial) market and improvement of the liquidity and the market access at all levels," Ermotti said.
Looking ahead, he said UBS sees more opportunities and plans to deepen its presence in the world's second-largest economy, serving as a key nexus between Chinese and international markets.
He noted that one of the biggest priorities is to help Chinese clients invest, diversify and achieve growth through their global expertise, as well as bring international investors into China. "Such a role will become even more important going forward."
Over the past two years, Ermotti has led the integration of UBS and Credit Suisse following the historic 2023 takeover. He said that with both banks already deeply committed to China, the merger has produced strong results and further strengthened UBS's presence in the country.
The banker, also a football enthusiast, said he aims to "score" more in China and across Asia.
"At this stage, around 20 percent of UBS's profits are coming from Asia. Our vision is to bring this profit share to around 30 percent." Most recently, the assets managed by UBS Group in the Asia-Pacific region have surpassed 1 trillion U.S. dollars.
Ermotti said that whether it's a football game or banking, the aim is to win. "In order to succeed, you need to work as a team. You need to have different skill sets to fulfill the requirements of your clients. It's not enough to have one or two good players. You need to have a good team, particularly a team that works well together."
When asked about the future of banking in an era with emerging tech like AI and blockchain, Ermotti said UBS is investing in AI to make front-to-back processes more efficient and accurate.
"But look, at the end of the day, banking will continue to be a people business," he added, noting that it's important to establish "Emotional Intelligence" to really understand the needs of clients. ■
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