 China is moving to liberalise its banking sector |
British bank Barclays has opened its first branch office in mainland China. The office in Shanghai will be able to offer money market and foreign exchange services and advise on risk management and debt financing.
Barclays' business in China has grown 30% this year, but unlike many of its competitors it has not bought stakes in local Chinese banks.
China will end restrictions on foreign banks next year as part of its entry into the World Trade Organization.
The Chinese banking regulator recently announced that foreign banks would be permitted to conduct yuan transactions in 25 cities including Harbin, Nanning and Ningbo.
Beijing has also said it will stop subsidising its own loss-making banks.
"China is clearly a key market for us in Asia and the new licence is an important part of our expansion in the region," said Barclays Asia chairman Robert Morrice.
"Our business in China over the past 12 months grew faster than our target of 20%, and we expect to maintain double-digit growth in the near future."
Barclays has set itself a target of doubling its share of earnings from outside of the UK, which stood at about 25% in 2004.
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