A senior economist at UBS who was suspended after he made controversial remarks relating to a bout of swine fever in China is returning to work, according to two people familiar with the matter.
Paul Donovan, chief economist at UBS Global Wealth Management, was placed on leave in June after he said that the outbreak of the disease only “matters if you are a Chinese pig” or “if you like eating pork in China”.
A spokesperson for UBS confirmed that Mr Donovan was scheduled to return to work on Wednesday.
His tongue-in-cheek remarks provoked outrage in China after a rival bank and some news outlets falsely claimed that he was racist, owing to the insulting nature of the word “pig” in the country, where it connotes laziness and stupidity.
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In fact, Mr Donovan, who has worked at UBS since 1992, was trying to make the point that the outbreak of swine flu in the region did not have broader implications for world pork prices, and was therefore of chief concern to the animals themselves and local consumers of the meat.
The Chinese Securities Association of Hong Kong also sent a letter to UBS demanding that Mr Donovan be dismissed. Mr Donovan made the remarks in a podcast and they were later summarised in a note that was sent to some UBS clients.
His reinstatement comes as companies operating in China scramble to respond to pressure from Beijing, which is pushing them to take a hard line against employees that are perceived to have insulted the country, as well as those deemed to be supportive of the protests in Hong Kong.
UBS conducted a review that concluded that Mr Donovan’s remarks caused unnecessary offence, according to one of the people. The review also trawled his previous output and concluded that it was an isolated incident, they added.
The bank is planning to resume production of Mr Donovan’s daily audio comment within the coming weeks, they said.
