Russia biggest private lender growing to China
(MENAFN) Russia's largest private lender, Alfa Bank, is set to establish offices in China as part of a significant expansion strategy, Bloomberg reported on Tuesday. The bank has applied to Chinese authorities to open branches in two major cities, Beijing and Shanghai, aiming to become the first private Russian bank with full-fledged operations in China.
This move follows Alfa Bank's efforts to enhance client support services for Chinese businesses. The lender already serves thousands of companies involved in trade with Russia and has introduced a Chinese-language website along with support for Chinese-speaking clients.
The bank’s board of directors initially disclosed plans for this expansion last September, highlighting the strategic importance of entering the Chinese market. In April, Alfa Bank announced its goal to open the new branches by the end of 2025, intending to facilitate yuan transactions for both Chinese and Russian businesses.
Alfa Bank has become the leading lender in Chinese yuan in Russia, accounting for a third of all yuan loans in the Russian market. This expansion underscores the deepening economic ties between Russia and China, especially as both nations declared a 'no limits' friendship. This process has been accelerated by increasing tensions between Moscow and the West over the Ukraine conflict and numerous economic sanctions imposed on Russia.
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