Chinese operations are crucial to the future of UBS, its investment banking chief told the South China Morning Post on Thursday as global markets buzzed with talk that the Swiss banking giant was among potential bidders for a US$3 billion stake in state-owned Postal Savings Bank of China (PSBC).
"I can't comment on that," UBS Investment Bank chief executive Andrea Orcel said in an interview at the firm's Hong Kong offices when asked about a possible PSBC deal.
"I'm not here in town for that. I can only tell you that China is absolutely critical for us."
UBS, Singapore's Temasek Holdings and French bank BNP Paribas are among six preliminary bidders to buy up to a 10 per cent stake in PSBC, people familiar with the matter had earlier told Reuters.
"I'm not saying it is happening or not happening, but we look at every way we can to add value to our clients," said Orcel, who is in Hong Kong for a staff training programme. "I wouldn't necessarily link that to: 'Oh my God they're buying a bank in China'."
China's biggest bank by outlets, PSBC has about 40,000 branches, and a strategic partnership could help foreign banks sell insurance and banking products to the nation's population.
PSBC was preparing for an initial public offering next year, which could raise about US$25 billion - the record for an initial share sale set last year by Alibaba Group Holding - China Daily reported in February. The stake sale is a stepping stone that would set a valuation benchmark for that offering.