RBS launches Chinese venture

31 May 2011

The Royal Bank of Scotland (RBS) has become the first UK bank to launch a Chinese securities joint venture.

According to the Financial Times, the partnership will provide the lender with a platform allowing it to underwrite share and bond issues in a considerable market for initial public offerings.

As part of the venture, RBS is to hold a one-third stake, while its partner Guolian Securities will control the remainder.

RBS Asia-Pacific chairman John McCormick said the deal would enable the institution to "participate fully in the opening up of China's securities market".

By pushing forward with the agreement, RBS will become the latest foreign bank to form securities in China, following in the footsteps of the likes of Credit Suisse.

RBS recently posted losses to the tune of £528 million ($864 million) for the first quarter of 2011 - a downturn it attributed mainly to the fiscal crisis in Ireland.

By Claire Archer

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development