In a statement released by the bank, Westpac said the branch will provide “deeper support” for its customers and “leverage the opportunities” expected to come with China’s economic reform and financial market liberalisation.
“Created as a testing ground for a number of economic reforms, the Shanghai FTZ will become a key strategic zone for customers wanting to increase their presence in China,” a statement from Westpac said.
Commenting on the opening of the branch, Westpac Institutional Bank chief executive Rob Whitfield said China is an “extremely important market” for the bank and its customers.
“The Beijing leadership has made it clear that its ultimate goal is to become a high income economy by 2030 with Shanghai as a first tier international financial centre,” Mr Whitfield said.
“The closer economic relations built between the Chinese and Australian governments last month reinforce the strategic value of the Shanghai FTZ,” he said.
“Westpac is well positioned to help customers capitalise on the increasing trade, investment and capital flows, being one of the first banks in Australasia to connect with the RMB (Renminbi) Hub in Sydney, as well as our leadership in supporting CNY/AUD foreign exchange flows in China,” Mr Whitfield said.
The Australian bank also said the sub-branch will be an “extension of Westpac’s service offering” in China across trade finance, commodity finance, debt capital markets, derivatives and foreign exchange.
“We anticipate the volume of trade and financial activities denominated in RMB will continue to build with many of these activities taking place in both the Shanghai FTZ and Sydney,” Westpac International general manager Bala Swaminathan said.
“Customers with business dealings in China and Australia can now embrace the benefits of dealing directly in RMB in both markets, particularly as increased liquidity encourages more finance and hedging activity,” he said.
