Barclays is opening a new international corporate banking division in Hong Kong providing services in cash management and trade finance services, including letters of credit (L/Cs).

The bank's prime targets for the moment are professional services firms in Hong Kong and China, but Barclays plans to role out similarly specialist divisions further afield.

Wholesale banking

The new division, which Barclays claims to be the first of its kind, provides wholesale banking to professional services firms such as trust companies and firms of accountants and lawyers whose clients are the thousands of international traders based in Hong Kong and China.

The service firms will be able to access Barclays' Internet platform to obtain market information and treasury dealing and complete forward contract transactions online on behalf of their clients.

Advantages

According to Barclays, one advantage for the professional services firms is that they would be able to pool their client accounts in one account that would enable them to benefit from higher interest rates.

Trade financing products including L/Cs, collection services and foreign exchange services will also be on offer through the new division.

Burgeoning trade

Barclays say that Hong Kong's imports and exports were worth more than US$400 billion last year, and China's massive volume of trade that has reached a record US$1.1 trillion prompted the bank to choose to open the division on the former British colony.

The bank says it is now looking at other potential markets in and around South East Asia with a view to expanding its operations in the region.

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