Deutsche Bank is reportedly planning to open new branches in China at a pace of about one per year to boost trade and investment between China and Europe.
Werner Steinmueller, head of transaction banking at Deutsche, said the expansion comes as part of the bank’s wider efforts to benefit from China’s economic rise.
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Steinmueller added that the opening of new branches will require approval and guidance from Chinese regulators.
Deutsche Bank, which currently has six branches in China, will provide importers and exporter’s trade financing, settlements and debt issuance in the Chinese currency to expand its presence into the offshore renminbi market.
Through this move, the bank aims to make renminbi, which is controlled, freely convertible by 2020 and also bet on long-term changes in Chinese financial regulations.
"We will steadily open branches. The renminbi is becoming more and more mainstream," Steinmueller said.
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By GlobalDataDeutsche Bank currently provides corporate banking and securities services, wealth management, and transaction banking in China, while investment banking services are offered domestically through Zhong De Securities Company, a joint venture with Shanxi Securities Co.
This year, China has granted a CNY80bn quota to Germany under the Renminbi Qualified Foreign Institutional Investor (RQFII) program to purchase securities in China and further accelerate the internationalization of the Chinese currency.
Deutsche said it could switch some of its own renminbi clearing volumes from Shanghai to Frankfurt to assist the facility.
