BNP Paribas Expands into China with 30 New Securities Hires

22 Apr, 2024

BNP Paribas Expands into China with 30 New Securities Hires

BNP Paribas SA is making a significant move into the Chinese securities market, having recently hired nearly 30 individuals to spearhead its operations in the country. This marks a return for the French bank after its exit from a local joint venture 17 years ago. The bank's strategic focus initially lies in bolstering its brokerage, research, and asset management divisions, following the receipt of regulatory approval last week. While the bank has opted not to expand its onshore investment banking arm due to high costs and a subdued deal-making environment, it remains committed to its corporate banking endeavors in China.

Led by Asia Chief Executive Officer Paul Yang since 2020, BNP Paribas is leveraging its European heritage to gradually expand its footprint in China amidst escalating tensions between the US and China. Notably, while other Wall Street firms like Morgan Stanley, Goldman Sachs Group Inc., and JPMorgan Chase & Co. have downsized their operations in the region, BNP Paribas has taken steps to strengthen its presence.

The bank has also made strategic hires, including industry veteran Ren Wang, to revamp its investment banking business in the region. This move has already borne fruit, with BNP Paribas significantly improving its market share in mergers and acquisitions in recent years. Moreover, the bank has been involved in several high-profile deals, including advising on multi-billion-dollar transactions such as Zhejiang Geely Holding Group Co.'s partnership with Renault SA and the buyout of Vinda International Holdings Ltd.

Additionally, BNP Paribas is following suit with other major banks in gaining full control of its securities platform, underscoring its commitment to strengthening its presence in China. Follow Cathy Chan for all the latest updates on this developing story.