A top IPO banker at UBS has been reinstated after being suspended amid an internal probe into the hiring of an employee linked to a Chinese company that awarded business to the Swiss bank, according to people familiar with the matter.

Joseph Chee, a decadelong veteran at UBS and head of global capital markets in Asia, was suspended as the bank investigated his role in the hiring of Joyce Wei, a relative of the head of a company that has hired UBS to manage its planned public offering.