Royal Bank of Canada (RBC) is to close its Shanghai branch by the end of June, becoming the first leading foreign bank to quit the city since the market was thrown open to foreign firms.
Following a review of its emerging markets operations, the bank will also close Hong Kong retail operations, with the loss of 46 jobs, and its Taipei branch, shedding 30 staff.
RBC has informed the People's Bank of China (Shanghai) of its plans.
'We were approved by the PBOC, so we had to tell them of our decision,' an RBC source said yesterday.
The branch, opened in 1993, has 16 employees to carry out trade financing, corporate banking, correspondent banking, investment banking and consultancy services.
The bank would maintain a presence in Hong Kong through its wealth management business which spans private client, corporate trust and retail brokerage services.
RBC had little loan exposure in Hong Kong and any mainland loans would be honoured, a spokesman said.
