China Merchants opens London branch

Chinese ambassador to the UK Liu Xiaoming (second from right) and China Merchants Bank President and CEO Tian Huiyu (first from right) attend the opening ceremony of CMB London Branch on June 16. [Photo by Cecily Liu/chinadaily.com.cn]

China Merchants Bank became the first Chinese joint-stock commercial bank to open a branch in London on Thursday, highlighting significant market-driven demand for Chinese financial service providers to expand internationally to serve increasing Chinese investment abroad.

The Shenzhen-based China Merchants Bank, established in 1987, is China's sixth largest bank, and the world's 16th largest bank. It first established a London presence in 2009 as a representative office, and with the launch of a branch China Merchants Bank will be offering a range of wholesale banking businesses serving corporate clients, including deposits, financing and currency clearing.

Tian Huiyu, president and CEO of China Merchants Bank, said the establishment of the bank's London branch is a vote of confidence for London's strength as a leading financial center.

Tian added the move is also an integral part of its overseas growth strategy.

"With Sino-UK relations entering a golden era, and bilateral investment continue to grow, London's position as the second largest offshore renminbi center is consolidating. More and more Chinese corporates are investing in the UK, and the establishment of a branch in London allows us to provide financial services to those companies following a global strategy," said Tian.

CMB London Branch's opening follows in the footsteps of three Chinese banks with branches in London, which are Bank of China, China Construction bank and the Industrial and Commercial Bank of China. Agricultural Bank of China and Bank of Communications also have subsidiaries in London.

Liu Xiaoming, Chinese ambassador to the UK, said the steady stream of Chinese banks coming here is a clear indication that Chinese banks are now going global, and is also evidence of a very strong China UK cooperation.

Liu said the CMB London Branch launch is also significant as it is the first of its kind of a Chinese bank in Britain which has set up by a joint-stock bank.