MidnightCall Magazine
News From Israel MagazineOpen Doors for Europe's Banks
European investment banks have established momentum over their US rivals in the race to develop Chinese securities joint ventures, amid signs that Beijing is delaying the entry of Wall Street firms to the coveted marketplace.
Chinese authorities are opening up the sector to greater foreign investment after a two-year ban and bankers familiar with the situation believe it is significant that Europeans have made the running in recent weeks.
In the latest development Deutsche Bank has agreed a tie-up with Shanxi Securities to establish a venture that will offer investment-banking services to mainland clients. It is expected to receive approval this year.
Recently, Credit Suisse secured regulatory approval to set up a securities joint venture with Founder Securities, a subsidiary of a mainland conglomerate, becoming the first foreign bank to gain entry since the moratorium was lifted in December. A five-year-old mainland securities joint venture part-owned by CLSA, the Asia-focused bank whose largest shareholder is France’s Credit Agricole, has also gained approval to expand its business.
One banking executive said: “By approving the Credit Suisse and CLSA applications, Beijing is sending a message to Washington: the Chinese securities market is opening, but Wall Street firms may have to wait until other issues are sorted out.”
-Financial Times, 27 June 2008, pg. 15
We do not need to wait for a world currency; it’s already here. The international banking community does not care in particular for a certain currency, but will mix and match. Europe, as is evidenced from this article, is being favored because of her ability to accommodate diversity.
(3332)