Swiss banks are deep in China’s quagmire
Hopeful growth plans from UBS, Credit Suisse and Julius Baer are fading into thin air. They are facing huge losses. Because the real estate crisis in China is affecting its wealthy clients in Asia.
Wealthy Chinese customers suddenly risk losing out to Swiss banks: receptionists from a luxury car brand wait for visitors at a Shanghai auto show.
Photo: Keystone
Thomas Jordan is not among those who show concern. But in light of the imminent bankruptcy of the debt-laden $300 billion Chinese property developer Evergrande, the head of the National Bank also cautioned: “I think it would be a mistake to fall into a state of anxiety, and at the same time it would be a mistake to ignore the whole development and consider it local development to ignore the problem “.
On the same day, Evergrande paid the holders of the internationally offered bonds an interest of $83.5 million. This has not happened yet. According to the Wall Street Journal, Beijing has already instructed provincial governments to prepare for protests. The governors seem to be dealing with the orderly liquidation of the struggling real estate giant. It’s unclear if this would work without creating a domino effect.