Chinese investment bank CICC cleared to operate in Dubai financial centre

China International Capital Corporation (CICC) has received a licence to operate in the Dubai International Financial Centre (DIFC), adding to the presence of Chinese firms in the United Arab Emirates as cross-border activities continue to expand.

The investment bank will join China’s five largest banks that have set up bases in the special economic zone. This expands the range of financial services available to support cross-border activities, including trade and sustainable finance, according to Ian Johnston, CEO of the Dubai Financial Services Authority (DFSA).

“To have CICC, one of the major investment banks, which can facilitate deals and arrangements, [is] a big step forward,” Johnston said on the sidelines of the Asian Financial Forum on Tuesday in Hong Kong.

CICC Hong Kong Securities received the licence last week. It allows the company to arrange and advise on credit, financial products and investment deals, according to the DFSA public register.

CICC declined to comment. Xu Jia, the deputy head of its investment banking department, said in a media briefing on Tuesday that the bank’s overseas units would aim to “meet the needs of Chinese enterprises for cross-border mergers, acquisitions, and greenfield investments”.

“We also recognise the demand for independent equity financing and listings for these Chinese firms’ incubated enterprises abroad,” Xu said.

Johnston said that Chinese banks are gaining clients in areas such as infrastructure and project finance, building on the existing dealings related to trade.