Barclays Capital is looking to further tap the Chinese market with its first branch on the mainland. David Zhang, director of China investment banking in Hong Kong, said Barclays has representative offices in place in Beijing and Shanghai, but is preparing to open its first branch in Shanghai by year-end.
An onshore branch will allow the firm to handle foreign currency deposits and trading. "Chinese corporates are expanding overseas while their home markets are opening to foreign competition," Zhang noted, adding that in order to better compete, corporates are increasingly looking to use risk management tools as well as widen their funding options. Officials at the firm said Barclays is still finalizing its application with the regulators, but is expected to apply for a derivatives license as well to market non-renminbi products to local corporates.
Credit Suisse First Boston, Citibank, HSBC and Standard Chartered and UBS currently have branches on the mainland and include derivative products in their remit.
