Commerzbank gets Chinese approval to open securities unit in Beijing

Commerzbank has received approval from the China Securities Regulatory Commission to open a securities unit in Beijing as part of the German lender's expansion plans into the Asian market, and as analysts predict a growing wave of Chinese overseas acquisitions. The branch will not carry out investment banking services in China but rather introduce its expertise to Chinese clients and assist them on outbound deals internationally.

Germany's Commerzbank received approval from Chinese regulators on Thursday to open a securities representative office in Beijing, which enables the bank to market its investment banking services to Chinese investors.

Analysts are expecting a growing wave of Chinese overseas acquisitions, with ChemChina's proposed purchase of the Swiss agricultural chemicals firm Syngenta in a deal worth over $43 billion this week being the latest deal.

Nick Johnston, Head of Commerzbank Corporate & Markets Asia, said that his team has already worked on some Chinese investment banking deals overseas and his team continue to see an increase in Chinese corporations wishing to invest in Germany and Europe, as well as needing to raise funds offshore.

"China will remain one of the most important markets for our German and European clients; despite market volatility, a GDP growth figure of around 6 percent is still significant," Johnston said.

Commerzbank supported China Construction Bank in 2014 with its debut offshore renminbi benchmark bond transaction on the Frankfurt Exchange. "The new representative office will enable Commerzbank to further support clients in and out of Asia with their expansion and financing plans," he said.

The representative office received approval from China Securities Regulatory Commission. The office will not carry out investment banking services in China, but rather introduce its expertise to Chinese clients and assist them on outbound deals internationally.

The Bank will have senior investment banking expertise on the ground in Beijing to introduce the Bank's capabilities and the business environment in offshore markets, especially in Europe.

China is one of the leading foreign investors in Germany. Commerzbank is Germany's largest corporate client bank and it has four branches in Shanghai, Beijing, Hong Kong and Tianjin. The Bank has been represented for more than 50 years in Asia and 30 years in Beijing. Different from investment banking, which focus on investments like M&A activities, corporate banking focuses on routine banking activities for companies.

"We continue to expect a robust development of the Chinese economy. We are confident regarding the long term growth in China, as the country has a large economy with considerable potential." said Stefan Otto, Regional Board Member for Asia for Commerzbank's Corporates International division.

To contact the reporter: cecily.liu@mail.chinadailyuk.com