MERCHANT bank NM Rothschild & Sons has applied to the People's Bank of China (PBOC) to set up a representative office in Shanghai, signalling the potential beginning of ambitious investment plans.
Will Dennis, the bank's Hong Kong branch director of China business, said the Rothschild move to set up a presence came as a result of rapid growth in business from the mainland.
''We found that we are doing so much work in Shanghai that it is necessary to have people there,'' said Mr Dennis.
He said once approval was received, the office should be established by around Chinese New Year.
All staff for the new office will be recruited in Shanghai and will liaise with Rothschild's business customers as well as help to source new business.
Hong Kong will continue to handle Chinese business, mainly underwriting of B shares.
Mr Dennis said that depending on the volume of business, he could not rule out upgrading the Shanghai office, or establishing representative offices in Beijing or elsewhere.