Credit Suisse Adds Analysts to Chinese Equity Research Team

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Credit Suisse recently announced that it had added nearly a dozen new equity research analysts to its China Equity Research team enabling the firm to both broaden and deepen its coverage of the Chinese stock market.

New Credit Suisse Hires

Last week, Credit Suisse announced the hiring of eleven new equity research analysts over the past few months, including five sector heads to bolster its China Equity Research platform.  These new additions to Credit’s Suisse’s research team include:

  • Yang Luo – Head of China Basic Materials Research
  • Charlie Chen – Head of China Consumer Research
  • Serena Shao – Head of China Healthcare Research
  • Thomas Chong – Head of Internet for Non-Japan Asia
  • Jianping Chen – Head of China Property Research
  • Alex Xie – Fintech and Internet analyst
  • Greg Zhu – Online Games, Education and Live Streaming analyst
  • Katherine Fu – China Healthcare analyst
  • Peter Li – China Basic Materials analyst
  • Alice Li – Diversified Financial Services analyst
  • Tianbo Yu – Asia Insurance and China FinTech analyst

These new hires strengthen an already robust China research team.  In Institutional Investor’s latest All-China Research Survey, Credit Suisse secured the most #1-ranked sector teams among offshore firms, with top rankings in six sectors, including Auto & Auto Parts, Conglomerates, Gaming, Lodging & Leisure, Insurance, Renewable Energy & Environmental Services and Technology.

Neil Hosie, Head of Equities, Asia Pacific, explained the recent expansion of Credit Suisse’s China research franchise, “China is a critical part of our growth strategy in Asia Pacific. With the Chinese government’s decision to further liberalize investment into its financial institutions, we are very positive on the long-term prospects for China’s stock market. Credit Suisse has the leading equities platform in Greater China, and these new hires underscore our continued commitment to provide best-in-class advisory and execution to our clients and to act as a bridge for international capital to flow into China’s domestic markets, as well as to help Chinese entrepreneurs and corporates access international capital.”

Our Take

For the second time in the past week, we are writing about Credit Suisse significantly expanding its equity research team – first in the US and now in China.  What is particularly telling is the fact that since the summer, Credit Suisse has added eleven new managing director or sector head level analysts to its research team in the US and Asia, a clear sign that the firm is aggressively rebuilding its equity research franchise in advance of the roll out of MiFID II next January.

The latest spate of hiring by Credit Suisse is a little counterintuitive as the bank has already been ranked as a top 3 country research team in China.  Clearly, Credit Suisse believes that it’s experienced and highly ranked China research will be able to command outsized research payments from European and global asset managers forced to pay for research separately from execution services once MiFID II goes into effect.

However, we also suspect that this move to deepen its China research coverage is a longer term bet by Credit Suisse as it positions itself to benefit from the liberalization of the Chinese financial markets and the expected growth of High Net Worth investors throughout Asia.  The big question is whether this bet will pay off.  We will keep an eye to see if Credit Suisse can make significant market share and revenue gains in Asia in the coming quarters to validate this investment.

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Mike Mayhew is one of the leading experts on the investment research industry. In addition to founding Integrity Research, Mike is on the board of directors of Investorside Research Association, the non-profit trade association for the independent research industry, and a frequent speaker on research industry trends and developments. Mike has over thirty years of research industry experience. Email: Michael.Mayhew@integrity-research.com

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