China’s second-biggest lender is pressing UK regulators for approval to set up a branch in London as part of a drive to expand its international business.
China Construction Bank – nominated this week as the official clearing bank for renminbi trading in London – approached the Bank of England about establishing a branch in 2012. Wang Hongzhang, the bank’s chairman, said it was now working with regulators to win a branch licence as soon as possible.
Operating as a branch, rather than a subsidiary, would allow CCB London to offer services on a much bigger scale, backed by its parent’s capital and liquidity. That would allow it to expand in syndicated lending, advisory services for infrastructure projects and M&A, and enter asset management, Mr Wang said.