In a most recent interview with Bloomberg, from the sidelines of Bloomberg’s New Economy Forum in Beijing, David Solomon, Chairman and CEO of Goldman Sachs Group Inc., talked about Goldman Sachs’ China strategy and business plans.
A jest of the Interview concerning various topics, which was discussed:
His views on China Strategy
While talking about his views on China’s strategy, he stated that Goldman Sachs has been in China for 25 years. Significantly, the opening up continues because they would like to claim and assume control of their business and they are watching every move on the trade discussions. A few months back, they have laid a five-year plan for China. Also, he stated that by investing a significant amount of capital into the business, more number of people could be hired. He expressed,
“Our primary client franchise serves a very broad array of clients across china. We do think that the wealth management opportunity could be a very significant opportunity over time and we are starting to think about ways we could partner with people here to build out our wealth management presence. It is a business we are the only nascent point at this point in time.”
The Trade Dispute between US-China
David opined that one of the big issues to think about is the medium and long-term economic growth in the US. Furthermore, China had found a way to how to exist together more productively and financially. He thinks there is a decent possibility that he will see some improvement in the trade discussions. He also hopes that after some time, both of these economies are too important for worldwide development that could figure out a way in a positive direction.
“I have been fortunate to speak with policymakers on both sides and I am encouraged. I think we could probably expect the progress to be in stages, but I am hopeful we will see some progress and I think it is important.”
Hong Kong as an important financial center in Asia
David said he didn’t see any changes in the behavior of customers who are the significant financial players in Hong Kong. He was trying to explain that Hong Kong has been an important financial center over the Asia-pacific region. He thinks that China recognizes its significance.
Partnership with Apple, the launch of credit card
David was so excited by the launch of their credit card. Their partnership with Apple has allowed Goldman Sachs to offer a credit card that gives consumers more information, greater adaptability, the capacity to accomplish digitally. The launch of it has been the successful co-branded credit card launched till date. He also enumerated that there is no gender bias in their process of extending credit.
Liquidity in the market
Concerning his views on liquidity, he said there is a huge move in the market structure and regulation over the last ten years. The events in the repo market are a sign that market structure changes for unknown reasons. He said the company would keep a watch on the progress and focus on it.
His views on Trade war
Enlightening about the Trade war, he stated that the U.S. economy is doing very well. Their lead U.S. Economists were discussing the reality that they may gain some ground on trade and monetary policy. Moreover, he is expecting 2020 a slight acceleration in the development of their current state, where he is progressively positive.
Goldman Sachs in next five years
Remarking on the development of Goldman Sachs in the next five years, David said that they have focused on expanding their wealth management capabilities to a more extensive group of audience. Moreover, they are taking steps to extend their customer franchise while including new organizations that they have traditionally focused on.
“We made an acquisition earlier this year that are helping us to move in that direction, and, besides, we’re adding certain products and services that can serve our existing clients. We’ve built a transaction banking platform. A corporate cash management platform, that the firm is now on, because we used to be a client of that service, and we’re going to invite clients on to that platform in the first quarter.”