Absa opens non-banking subsidiary in China
Staff Writer | Tuesday May 14, 2024 06:00
According to the banking giants, its office in China will operate under a wholly foreign-owned enterprise licence.
The licensing regime permits the financial institution to provide general advisory services to clients based in China for concluding transactions across the African continent, as a non-banking subsidiary of Absa Group Limited.
Equally, this office allows the Absa Group to provide general advisory services to clients based in China for concluding transactions across the African continent, as well as distribute economic or general securities research reports permitted by Chinese regulation to corporate and institutional clients in China and across the African markets. Group CEO, Arrie Rautenbach, said the China-Africa investment relationship has flourished over the past few decades with Asian giant emerging as the continent’s largest bilateral trade partner. He said this has been fuelled by Chinese investment in Africa’s vast natural resources and infrastructure projects, creating huge commercial opportunities for both regions. “Our decision to establish a presence in China was driven by our ambition to better connect trade, investment flows and clients into Africa, where we will serve them across our extensive continental footprint,” Rautenbach said.
“Absa Group intimately understands the continent and seeks to be a partner of choice for organisations looking to access opportunities on the continent.” For his part, CE of Absa Corporate & Investment Bank Charles Russon, said this is part of a wider commitment from the banking group to expand its operations with an international presence in strategic markets and offer deep expertise in African markets to its overseas client. In addition, he said the new office will enable the Absa Group to offer local support to Chinese clients and stakeholders to conclude transactions across the African continent.
“Our presence in China will help to firmly establish Absa’s capability to provide general advisory services to clients based in China for concluding transactions across the African continent,” Russon said. “This will not only give us a physical presence in the region but also help us to meet the needs of our clients operating in this rapidly growing market. Being present in China allows us to be close to clients who see trade and investment in Africa as key to their strategic ambitions,” he added.