Chinese Merchant Securities, part of the state-owned China Merchant Group, is to open an office in London, it was announced this week. Its deputy CEO, Stephen Kan, said that it plans to become a major investment bank.

The decision will come as good news for people looking for financial services jobs in London. About 40 jobs are expected to be created in the immediate future as a result of the move, with more to follow if the bank is subsequently able to expand as planned. Its focus will be on offshore renminbi but it also hopes to function as a trading hub, helping to broker deals between businesses and investors in Europe and Asia.

It will undertake risk management work in markets such as the Intercontinental Exchange Europe. London is already the second biggest marketplace for traders of offshore renminbi and the Treasury hopes that this will secure that position as well as helping to boost the status of the city’s financial markets more generally.

Earlier this week, the London Stock Exchange welcomed the Bank of China and the Agricultural Bank of China, the latter hoping to develop debt and equity products in renminbi. A deal has also been made with the China Development Bank Corporation with the aim of strengthening renminbi trading, and China Minsheng Investment Corporation has revealed plans to open a London branch.

These developments are also expected to create opportunities for British companies interested in investing in China. Bank employees that can speak both English and Chinese are likely to be in increasing demand.