RBS gets approval for investment banking activities in China
May 31, 2011‐ Wuxi, China
The UK-based Royal Bank of Scotland became the first UK bank to get an approval to carry investment banking activities in the People's Republic of China. The operations which primary includes manage stock market floats, share sales and debt issues in China will be carried out by Huaying Securities Co Ltd which is a joint venture of RBS with China's Guolian Securities Co Ltd. 'Hua' means 'Chinese' and Ying means 'British.' RBS will be holding 33% stake in the JV.
The JV will function from Wuxi in Jiangsu Province. RBS said that currently it is interested only in the investment banking business and has no plans for the banking business in China.
John McCormick, the chief executive of RBS Asia said, 'You can see America and Europe have gone flat and you can see Asia increasing. We want to become a bigger part of the bigger pie.'
China indeed has pie of share in the global primary market sector. In fact, China led the world in IPOs last year, with as many as 346 companies raising $83.7bn. Global financial biggies including Credit Suisse and HSBC have either already found out their JV partner or are in the process so as to make inroads into the Chinese territories.
Other top banking news
- Bharatiya Mahila Bank aims at adding 55 new branches in FY 2014-15 (March 11, 2014)
- Indian banking sector to be hit with Microsoft withdrawal of support for XP (March 4, 2014)
- Withdrawal of old Currency Notes in circulation in India (February 22, 2014)
- Linking of MNREGS with the Banking System (February 22, 2014)