UBS combines China, Hong Kong banks as it appeals to keep licence to sponsor Hong Kong IPOs
The Swiss banking giant is appealing after it was fined HK$119 million and barred for 18 months from sponsoring IPOs in Hong Kong
UBS, which is appealing against a decision barring it from sponsoring stock market listings in Hong Kong, is restructuring its investment banking department by combining its China and Hong Kong arms, according to an internal memo seen by the South China Morning Post on Thursday.
The Swiss banking giant said in its annual report in March that it had been fined HK$119 million (US$15.2 million) by the Securities and Futures Commission and blocked from sponsoring initial public offerings for 18 months. UBS said it would appeal against the fine and licence suspension and, as such, can now still act as a sponsor until a decision is reached on the appeal.
It is not known what led to the penalties but the SFC had been investigating the bank’s role as a sponsor – or lead underwriter – of some IPOs listed on the Hong Kong stock exchange, UBS said in the report.
“With the ongoing integration of the Hong Kong capital market with China, both on issuance and the investor side, the market continues to grow at a rapid pace,” said the memo sent by David Chin, head of corporate client services (CCS) Asia-Pacific at UBS.
“To ensure we capture this unique window of growth and leverage our integrated platform further, we are announcing today that the Hong Kong-based CCS China team will combine with the Hong Kong and Taiwan team with immediate effect.”
