ABC establishes first branch in London

Opening means seven Chinese banks represented in capital

Agricultural Bank of China, also known as ABC, launched a branch in London on Tuesday, becoming the seventh Chinese bank to do so.

The opening of the branch on Bartholomew Lane, close to the Bank of England's headquarters, is the latest example of ever-closer financial collaboration between China and the United Kingdom, despite the prospect of the UK’s imminent departure from the European Union.

ABC’s London branch offers wholesale financial services and products, such as renminbi products and financing support for cross-border trade and investment activities. The bank will also use its London branch to finance Belt and Road Initiative projects.

ABC is China's third-largest lender. It first expanded to London in 1993 by opening a representative office, which was upgraded to a subsidiary in 2012. In that same year, ABC issued a renminbi green bond in London, which was listed on the London Stock Exchange.

“Over the past six years, our subsidiary has made significant advancements, in business performance, client building and staff recruitment,” said Zhou Mubing, chairman of ABC.

Compared to operating as a subsidiary, operating as a branch allows ABC to enjoy far greater lending and financing capacity in the UK.

The subsidiary had also helped ABC to build a good relationship with British regulators and contributed toward the bank’s overall development strategy, Zhou said.

Liu Xiaoming, China’s ambassador to the UK, said ABC’s London branch opening is “further testimony” of the “golden era” of China –UK relations, which began with President Xi Jinping’s visit to Britain in October 2015.

It is also “a vote of confidence for the City of London, against the backdrop of Brexit, and epitomizes the sound progress of China-UK financial cooperation”, Liu said in a message read out at the London branch opening ceremony.

ABC is already a member of the City of London’s renminbi initiative and green finance initiative, meaning it regularly participates in discussions in both areas to share suggestions with government representatives and industry practitioners in London.

“ABC is a fine member of the flourishing Chinese financial ecosystem here in London,” said John Glenn, the UK’s economic secretary to the treasury and city minister.

By the end of 2017, ABC has established 22 overseas institutions and one joint-venture bank. In 2017, its revenue was 537 billion yuan ($81.6 billion).

Other Chinese banks with branches in London are Bank of China, China Construction Bank, Industrial and Commercial Bank of China, China Merchants Bank, Bank of Communications and Shanghai Pudong Development Bank.