Royal Bank of Scotland is close to forming a venture with Chinese group Guolian Securities as part of the lender's expansion in the booming Asian economy, a Reuters source has said.
"China is a core market for RBS in Asia," the insider claimed.
RBS, bailed out by the government at the height of the financial crisis, confirmed it was seeking a new Chinese securities joint venture but declined to identify any parties with whom it was holding talks.
RBS, 83 pe rcent owned by the British taxpayer, is looking to build on existing partnerships with Galaxy Futures and Suzhou Trust. The British bank has minority stakes in both these Chinese companies.
Many major international banks are focussing on China's securities market for growth in the wake of economic uncertainty in Europe and the United States.
UBS, Credit Suisse, Goldman Sachs Morgan Stanley and Deutsche Bank are among global banks with securities joint ventures in China.
Data released earlier this month showed Chinese industrial output exceeded expectations, highlighting that the country's economy had remained buoyant despite government efforts to clamp down on bank lending and property speculation.
City A.M. Reporter