Shanghai listing plan for RBS clients

Royal Bank of Scotland yesterday said some of its clients have expressed interest in listing on the Shanghai international board, and the bank is making preparations through its local securities joint venture.

RBS, which is 83 per cent owned by the British taxpayer, also aims for its local Huaying Securities joint venture to have a mix of both debt and equities offerings, its China chief executive, Sherry Liu, said. This would be a departure from its traditional fixed income focus in Asia.

“We’re looking for balanced growth in China,” Liu said during an interview on the sidelines of the World Economic Forum in the north-eastern Chinese port city of Dalian.

“The Chinese market is developing very quickly, and there are opportunities in many sectors.”

Liu, a former JP Morgan banker who joined RBS in April, declined to name the clients who wanted to list in Shanghai.

RBS owns the maximum permissible one-third of Huaying Securities, which it set up with Wuxi-based Guolian Securities in November last year, a move that allows it to underwrite local stocks and bonds.

It had a significant retail banking presence in Asia before the financial crisis, but was forced to sell that when it ran into trouble at home and now concentrates largely on its investment banking operations in the region.

“We want to be prepared for the day when the international board is ready,” Liu said.

Many foreign companies including HSBC, Unilever and Standard Chartered have said they want to list in Shanghai