UBS to investigate whether its chief economist insulted China in a report

The Swiss investment bank UBS is set to investigate its chief economist Paul Donovan after he made a comment that has been interpreted by some people as being an insult to Chinese people, reports the Shanghai-based news agency The Paper.

During the investigation, the economist will be suspended from work, according to the report.

The chief economist of UBS, Paul Donovan. [File photo: CGTN]

In a podcast titled "Very Normal Inflation" on Wednesday, Paul Donovan was speaking about China's consumer price index and the impact of the African swine fever epidemic on inflation, when he said "Does this matter? It matters if you are a Chinese pig. It matters if you like eating pork in China."

The controversial statement has triggered heated debate in the finance industry.

UBS issued an apology on Thursday, saying "We apologize unreservedly for any misunderstanding caused by these innocently intended comments by Paul Donovan. We have removed the audio comment from circulation. To be clear, this comment was about inflation and Chinese consumer prices rising, which was driven by higher prices for pork."

However, the Chinese Securities Association of Hong Kong said Donovan's ethics have been called into question, and in an open letter to UBS, demanded that he be fired.

"UBS takes this matter seriously. We are enhancing our internal processes to avoid any recurrence of a similar situation. We remain fully committed to investing in China," UBS said in a response on Friday.

UBS is a global financial services firm that provides wealth management, investment banking, and asset management services in China.