Swiss banks are currently having a hard time in China:
UBS is in trouble due to a pig comment made by its chief economist Paul Donovan, which seriously offended Chinese people. The stakes are high for the bank which had a long presence in the country. And there were already consequences: one of China’s biggest state-owned companies, China Railway Construction Corp, decided to not hire the Swiss bank for a deal.
Credit Suisse is also encountering difficulties, the bank plans to increase its stake in Credit Suisse Founder Securities to 51 percent, but now it seems that three investors acted fraudulently when acquiring a majority in Founder Group. This could jeopardize Credit Suisse’s agreement with Founder Group for the purchase of additional shares.
