The Royal Bank of Scotland (RBS) has received approval to go-ahead with a new joint venture in China.
According to reports, the bank is to collaborate on a new securities business with Guolian Securities and has six months in which to implement the joint venture from the start date of the approval.
Lawrence Lam, head of Greater China for RBS and Philip Hampton, RBS chairman, made the announcement at a media event in Hong Kong.
The latter told Dow Jones that RBS would own a 33.9 per cent stake in the new business venture.
He also added that the bank did not need to source fresh capital in order to meet the requirements of the Basel III regulations.
Earlier in the year, the bank announced it was looking to set up a joint venture in the territory.
At the time, a spokesman for the financial services provider said: “China is a core market for RBS in Asia as well as globally, and we will continue to invest significant resources in building our wholesale and investment banking businesses here."
“In addition to our existing joint venture interests in Galaxy Futures Co and Suzhou Trust Co, we are also seeking a securities joint venture."
By Jim Ottewill