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Shih
said market volatility was pushing clients to look outside of
their home market for investments.
"We see a lot more interest in diversification," said Shih.
The world's largest wealth manager plans to open a new wealth
management branch in Shanghai by the end of the first quarter,
said UBS CEO Sergio Ermotti in his opening address at a
conference in Shanghai on Monday.
"We expect double-digit growth in this market," he added
according to a transcript of his speech circulated at the
conference.
In November UBS Asset Management launched an entity in the
Shanghai free trade zone to raise private funds in China to
invest overseas via China's Qualified Domestic Limited Partner
scheme (QDLP).
Many fund managers use the QDLP program to tap high net-worth
Chinese individuals and institution investors for cash to invest
overseas.
In 2015, high net worth individuals put 65 percent of their
investable assets in private banks or other wealth management
institutions, a jump of 25 percent from 2009, according to a
private wealth report published in September by Bain & Company.
But in November, the bank pushed back a targeted adjusted return
on tangible equity -- a measure of profitability -- of above 15
percent to 2018 from 2016 previously, citing the slowdown in
China and difficult macroeconomic conditions as reasons for the
move.
(Editing by Louise Heavens)
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