The Bank of China's plans to set up a merchant bank in London have been agreed to in principle by the Bank of England but final approval is still pending, the head of the London branch says.
Wu Changgeng said preparation for the birth of the merchant bank - to be named Bank of China International Holdings - had started after primary approval was granted.
'What we are doing now is establishing the operation system in accordance with the Bank of England's regulatory requirements, and looking for staff to build up the team,' he said.
Mr Wu said official approval would depend on whether the bank could meet the regulatory requirements.
'We hope to see the official approval come by the end of this year and start operation at the same time,' he said.
Mr Wu said the registration capital total for Bank of China International Holdings was not decided despite market rumour the licence had been approved for US$500 million.