Over a long period of time Nordea has experienced that more and more Nordic companies are expanding their business activities in China. Therefore, Nordea has now decided to start the process of applying for a banking licence in China to open a branch in Shanghai. With a branch Nordea will become able to handle and advise corporate customers with activities in the Chinese market.

Since 1984 Nordea has been represented in Beijing and has therefore built up detailed knowledge of the fast growing economy. By its representation in China Nordea has mainly advised Nordic corporate customers on export and project finance. But now Nordea wants to expand its activities and offer all types of financial advice to its Nordic and Polish/Baltic corporate customers.

Important financial partner

"China became a member of the WTO in 2001 and since then it has become considerably easier for foreign companies to invest in China. This is of major importance to Nordic companies, among others, which now need a financial partner that can provide high-level advice and financial service in a foreign market," says Henrik Mogensen, Head of Corporate Banking Division, and continues.

"Our customers work more and more internationally and many wish to do business in the Chinese market. We wish to assist our customers in realizing their visions and aspirations – that is why we take this initiative now".

Licence for local currency

The Chinese economy is growing still stronger internationally, resulting in growing interest among companies around the world in riding the wave. This also means an increased need for financial advice and services, why Nordea now wants to intensify its local presence by applying for a banking licence. In the new branch both local and Nordic experts will be in place.

Nordea has embarked on the application process to obtain permission to carry out branch activities in China and expects to receive a final permission from the Chinese authorities before the end of 2007. With the permission Nordea immediately obtains a licence to operate in foreign currency and in due time with respect to the Chinese banking regulations Nordea will apply for a banking licence to operate in the local currency renminbi yuan (RMB).