UBS faces uphill battle to regain ground in Hong Kong after IPO ban

Handed in March last year, the ban was lifted two months earlier than expected.

UBS Group faces a tough task of regaining lost ground after it was banned from sponsoring IPOs in Hong Kong for 10 months, according to a Reuters report.

The ban was lifted two months earlier than expected after regulators last week said standards had improved since they found due diligence failings during an industry-wide investigation. UBS was first handed the ban and a $48m (HKD375m) fine in March last year.

“After the fines, international banks - especially UBS - have the problem of clients perceiving due diligence processes as more rigorous and protracted with an international bank than a Chinese firm, making the latter more attractive,” Quinlan & Associates chief executive of consultancy Benjamin Quinlan said.

Hong Kong placed third globally last year in terms of IPOs behind the Saudi Exchange and Nasdaq, raising $25b.

Here’s more from Reuters.