China bank opens branch in Singapore

Shanghai Pudong Development Bank will use the new branch it opened in Singapore yesterday as a base to expand across the region.

The branch at the Marina Bay Financial Centre is the bank's first overseas outlet. The bank said Singapore's location at the heart of South-east Asia makes it well-positioned to seize the business opportunities brought about by China's "One Belt One Road" strategy.

Vice-chairman and president Liu Xinyi said: "Singapore is an important international financial centre and plays a pivotal role in the Asia-Pacific region and the global financial sector.

"The bank plans to make the Singapore branch our key regional hub, acting as a conduit between our clients and South-east Asia, and... using the establishment of the Singapore branch as the new launch-pad of our internationalisation strategy."

Shanghai Pudong Development Bank obtained its wholesale banking licence from the Monetary Authority of Singapore last month. This allows it to conduct the same range of services as full banks, except it faces certain restrictions pertaining to the collection of Singapore dollars deposits and it can have only one main branch. 

This will make it the eighth Chinese bank to open a branch in Singapore. Others include the Bank of China, the Industrial and Commercial Bank of China and China CITIC Bank International.

Shanghai Pudong will focus primarily on local and multinational corporations, as well as Chinese companies expanding into the region.

The branch will also provide financial services to companies seeking to enter the Chinese market, serving as a bridge connecting Singaporean and Chinese corporations, said the bank.

The branch expects to employ up to 40 people by the end of the year.

Correction note: This story has been edited for clarity.

A version of this article appeared in the print edition of The Straits Times on April 13, 2017, with the headline 'China bank opens branch in Singapore'. Print Edition | Subscribe