Deutsche Bank AG (DBK) co-Chief Executive Officer Anshu Jain said Chinese policy makers’ efforts to bolster domestic consumption and reduce dependence on the government’s infrastructure spending pose some risks.
“It’s the right strategy for them in the long run,” Jain said in an interview with Bloomberg Television’s Haslinda Amin today in Singapore. Still, “if there is something to watch closely in China, it would be the implications of that shift from infrastructure spending.”
Chinese Premier Li Keqiang yesterday signaled that he won’t let economic expansion stall too much even as he keeps it within limits and avoids “wide fluctuations.” Growth slowed for a second quarter in the three months ended in June as factory output and fixed-asset investment weakened, adding to risks that the government will miss its expansion target.
“Clearly they see signs which are concerning them, which is why they are making the adjustments they are,” Jain said. “From our vantage point, we remain optimistic that in the end, this will be engineered into a smooth outcome.”
Deutsche Bank, continental Europe’s biggest bank by assets, remains “very constructive” about growth in Asia despite the slowdown in China and India (INGDPY), Jain said. The lender aims to build its wealth management operation and is seeking more clients for commercial banking in the region, he said.
“Asia is a region where we see tremendous incremental opportunity,” he said. “Our overall plans in Asia are clearly for expansion.”
Jain and co-CEO Juergen Fitschen led a meeting of the management board and group executive committee in Singapore yesterday, the bank’s first such gathering in the city state, it said in a statement today.
The lender’s Asian equities operation is “leaner, more efficient,” and is taking market share, Jain said, without providing specific figures. In September, Deutsche Bank had listed equities in the Asia-Pacific region as one of the businesses at its investment banking and trading arm that required a “turnaround.”
Jain, the 50-year-old former head of Deutsche Bank’s corporate and investment bank, became co-CEO with Germany head Fitschen, 64, at the end of May last year. The pairing is an attempt to bridge the bank’s roles as a trading colossus that vies with Wall Street firms like Goldman Sachs Group Inc. and as a Frankfurt-based lender to German companies.