Details
Northern Trust can now operate a branch directly in Beijing to service the global custody needs of its clients.
31 August 2010
In a continued sign that China is opening its market up to foreign banks, Northern Trust is the latest bank to announce that its application for a branch license in Beijing has been approved by the China Banking Regulatory Commission (CBRC).
The authorisation by the CBRC marks a milestone for Northern Trust, which has had a representative office in Beijing since 2005. Northern Trust chairman and CEO Frederick H. Waddell said China's dynamic economy and emerging opportunities for overseas investment, meant it was a strategic focus for the bank.
The Northern Trust Company Beijing Branch will support institutional clients in China with global custody, accounting, performance measurement and investment mandate compliance monitoring services. The branch license allows Northern Trust to provide client services directly from the Beijing office, rather than from Singapore or Hong Kong, as is required with a representative office.
The Beijing branch will play a key role in Northern Trust’s continuing growth in the Asia-Pacific region, where assets under custody grew by 80% in 2009. Over the past three years, Northern Trust has grown its staff in the region to more than 2,000 employees at its offices in Beijing, Hong Kong, Singapore, Tokyo, Melbourne and Bangalore.
The bank's presence in China dates back to 1999, when it began a co-operative relationship with the Bank of Communications. In 2002, Northern Trust began consultation with China’s National Council for Social Security Fund (NCSSF) in preparation for its investment in overseas equities markets. After receiving approval to open a Representative Office in 2005, Northern Trust was appointed as global custodian for both the NCSSF and Bank of Communications, and has continued to develop its custody and asset servicing business in China.
“Over the past decade, [we] have worked with Chinese companies and institutions to develop the financial infrastructure to support overseas investment programs," said Michael Wu, chief representative for Northern Trust in Beijing. "With this branch license, we can expand the service solutions we provide to current clients and further strengthen Northern Trust in the Chinese asset servicing market.”