CROSBY Securities is opening its second office in China today at a formal ceremony in Shanghai. A company spokesman said the opening was the first by a Western securities firm in the city. In 1990 Crosby opened an office in Beijing which at the time was the first of its kind for a Western broker anywhere in China, said the spokesman. Crosby group chairman Timothy Beardson said: ''Within five years we expect the market capitalisation of the Chinese stock markets to exceed US$400 billion. ''This is more than the current size of the Hongkong, Taiwan and Korean stock markets combined.'' He said the group anticipated that revenues from the company's China business would become the single most important component of the Crosby group over the next few years. ''As a result we will continue the expansion into China which we began in 1986,'' said Mr Beardson. In April last year Crosby Asset Management launched the London-listed China Investment Company (2002) with warrants investing in unlisted investments and B shares. ''It raised over US$27 million from a selected group of government and private sector financial institutions,'' said the company spokesman, who added that Crosby Asset Management had established its own office in Beijing as well. In total Crosby employs 12 staff in three offices in China. ''Crosby continues to hold a very positive view about the future social and economic development of China. ''It is optimistic about the future business environment. Crosby will accordingly continue actively to expand its commercial presence in China over the next few years,'' said a company release. In September French banking giant Societe Generale bought 30 per cent of Crosby Securities. The deal involved the creation of a new holding company, into which the Societe Generale stake was placed, called Crosby Securities International Holdings, which in turn owns 100 per cent of Crosby Securities and Crosby US Holdings. Eventually it is expected that the French partner will take a 49 per cent stake in the brokerage operation holding company. The new holding company is the parent for all Crosby's securities operations in Asia.