UBS is said to have connections with sanctioned Chinese military companies, as per a report by "Finanz und Wirtschaft."
The Swiss banking giant is reportedly investing around $1 billion in Avic Xi"an, a fighter jet manufacturer, and Hikvision, a surveillance camera supplier, through joint ventures with state-owned Chinese enterprises.
Both companies have been on the U.S. sanctions list since 2021. UBS claims to comply with U.S. regulations and has divested all shares in the sanctioned companies through its subsidiaries. However, concerns have been raised as the joint ventures continue to make significant purchases, potentially leading to repercussions from U.S. authorities.
UBS states that, according to current U.S. laws, these securities can still be traded in non-U.S. markets as long as no U.S. persons are involved in the transactions. The bank emphasizes that the independent investment decisions made by the joint ventures do not violate U.S. sanctions, either directly or indirectly.