Ajit Karn
Hong Kong: Credit Suisse convened hundreds of clients in a posh Hong Kong hotel on Tuesday for a glitzy investment conference, where they were exhorted to ” embrace the new reality” days after the company was rescued in an emergency buyout.
Even as details of the takeover by Swiss behemoth UBS remained unclear and global markets were buffeted by concerns for the banking industry, executives of the troubled Swiss bank were keen to offer reassurances at the event.
Sunday, UBS consented to a government-brokered agreement to acquire Credit Suisse for $3 billion Swiss francs ($3.25 billion), a move that authorities deemed essential to prevent further economic instability.
Chairman Axel Lehmann and CEO Ulrich Korner cancelled their scheduled appearances at the event in the Chinese financial centre.
That left Head of Global Equities Neil Hosie to greet corporate clients at Hong Kong’s Conrad Hotel, overlooking Victoria Harbour.
A Credit Suisse executive present at the event told AFP that Hosie did not discuss company prospects during his closed-door welcome address and did not take any queries.
Hosie issued a concise statement to the media in which he remarked, “The (conference) exemplifies Credit Suisse at its finest.”
“For the past 26 years, we have had the honour of presenting insightful perspectives on the most significant topics.”
Organisers in Hong Kong announced that the event would no longer be open to the media following the weekend’s pivotal discussions at the Swiss finance ministry to determine the fate of the bank.
Asserting that the event was private, a security officer attempted to prevent an AFP photographer from taking photographs inside the hotel.
According to the company, the 26th incarnation of the three-day event was intended to focus on how investors can adapt to slower development and heightened tensions in Asia.
The schedule of guest speakers includes the British explorer Bear Grylls, who will speak about overcoming fears, developing mental resilience, and how “our mindset affects our business success.”
John Lee, the mayor of Hong Kong, stated on Tuesday that the repercussions from Credit Suisse’s scandal would not have a significant impact on the city because Credit Suisse’s business and assets in Hong Kong were relatively modest.
Lee stated at a regular news briefing that Hong Kong’s financial system is extremely robust and properly regulated.
Lee was supposed to speak at the conference, but he was substituted by another Hong Kong finance official.
“Do not feel fear”
While Credit Suisse prepares for life under new management, its Hong Kong clients were told to “embrace the new reality and thrive,” according to promotional materials prepared well in advance of the weekend’s events.
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The bank anticipates that the event will attract more than 1,600 institutional investors from more than 200 companies, including 84 Chinese firms.
Tuesday’s congested lunch buffet and vivacious conversations in the hotel hallways revealed few indications that something was wrong.
The Credit Suisse executive reported that the majority of clients who attended the event were supportive of the bank and have faith in the acquisition.
He stated, “They are unconcerned about any potential issues because this (merger) has the support of the Swiss government.”
AFP was informed by a conference delegate representing a Chinese company that the acquisition-related news was positive.
The executive, who declined to give his name because he was not authorised to speak to the media, stated, “I don’t feel any sense of panic here.”
“But this is a good reminder to be prepared and keep our options open.”
