Credit Suisse struggles to halt departures from Hong Kong bank

More recent resignations from the Swiss lender have resulted in a struggle to halt departures from its private bank in Hong Kong.

According to people familiar with the matter who asked not to be identified as discussing private information, Luke Chiu, a managing director and China market leader, has resigned from the bank.

Nelson Hui, a director and team leader for China, has resigned along with two relationship managers, the people said. A spokeswoman for Credit Suisse declined to comment, as did Chiu. Hui couldn't be reached for comment.

Steven Lau, a director on the Hong Kong team, resigned a few weeks ago and is joining a rival firm, people familiar with the matter said. This adds to the two senior banker resignations last month.

After a weekend of fevered Twitter speculation about its financial health, the Swiss banking giant plummeted 12% to an all-time low on Monday, before regaining almost all of its losses later in the day. The cost to insure the bank's debt against default went to its highest ever since, accompanied by a spike in the cost to insure the bank's debt against default.

The bank is due to unveil an emergency strategic review on October 27 that is expected to include a large-scale investment banking retreat. The bank has become a poaching ground for rivals because of the turmoil, as it outlined plans to expand its wealth unit by focusing on markets such as Hong Kong and Singapore.

In the mainland, Credit Suisse has ambitions to grow - hiring private banker Wang Jing from China Merchants Bank Co. to develop its onshore wealth management business in 2020. The bank has yet to get final approval to provide services to wealthy mainland China clients.

The bank said last month that its partner in China agreed to sell its remaining stake in a local joint venture for 1.14 billion yuan $160 million, paving the way for the firm to take full control of the onshore securities operation.

People familiar with the situation said in June that the lender in Zurich delayed the launch of a locally incorporated bank in China by a year to 2024.

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