Swiss financial giant UBS said on the 10th that it will shut down the fund distribution business at its Shenzhen, China unit at the end of September. The business was launched in 2022 under the WE.UBS brand for wealthy Chinese investors and had been operated as an independent fund distribution unit. UBS told Reuters in a statement that its other wealth management-related businesses in China are operating as usual, and that resources related to the business being closed will be integrated into other divisions. According to three people familiar with the matter who spoke to Reuters on condition of anonymity, WE.UBS struggled to expand its business scale amid a highly competitive market environment as well as internal competition within UBS. UBS's other operations in China include a securities brokerage unit and a banking unit, both of which hold fund distribution licenses.
UBS Group AGUBS is shutting down its WE.UBS fund distribution unit in Shenzhen at end of September, scaling back a China business.
