Deutsche Bank eyes bigger role in China's economy

Deutsche Bank firmly believes in the strong rebound of the Chinese economy, which will also have a positive impact on the global economy, said Alexander von zur Muehlen, CEO of Deutsche Bank Asia-Pacific.

"We forecast an above-consensus GDP increase this year at a time when many countries are heading for a recession. This also reflects the view of many of our clients," said von zur Muehlen, who is also a member of the bank's management board.

The swift rebound in activity is positive and the speed of the country's reopening came as a surprise on the upside in many respects, he said in an interview with China Daily ahead of his visit to China later this week.

"There's no substitute for in-person interaction with our clients, colleagues and regulators. That's why I scheduled my trip as soon as the borders were open and why I plan to be a regular visitor again. The same renewed connections are happening across so many industries and I'm confident that this will also contribute to ramped-up economic activity," he said.

Deutsche Bank has welcomed China's sustained efforts to open its capital markets over the years and has played an active role in supporting the country's stronger integration with global markets.

The bank issued its inaugural panda bonds earlier this year, raising 1 billion yuan ($144.3 million) via three-year senior preferred notes. It is also a top market maker in the Bond Connect program, which has contributed to increased international investor participation in the country's domestic capital markets.

"China has done a good job of signaling its aim to open its financial markets and then following through with action and continued refinement of its regulatory frameworks. Increased market integration is good for China's domestic economy and the global economy alike. We see significant opportunities as China continues down this path of opening," said von zur Muehlen.

Last year, Deutsche Bank celebrated its 150th anniversary in the Asia-Pacific. The bank started its global expansion with its first overseas branch in Shanghai in 1872, just two years after its establishment.

"We are very proud of our deep roots and long history in China. Shanghai was our first foreign branch in the world and our founding mission to support our clients in their global pursuits brought us to China even before we ventured to London, New York or Paris. We have seen the dramatic evolution of the country's economy and markets and are glad to have grown alongside our clients over the decades," he said.

Amid China's continued efforts to open up its markets, widen access and encourage increased healthy flows — both inbound and outbound — Deutsche Bank continues to position itself for steady growth together with the country.

"As China's economy has developed exponentially, so too has the depth of its financial markets and the opportunity set for international financial institutions like us. We remain committed to investing in and growing our platform in China organically. What's more, in today's market environment, which is beset by volatility and increased friction in cross-border business, we have an important role to play in building bridges for our clients, markets and economies. This also creates opportunities," he said.

In addition, the bank is also well positioned to support China's ambitions for a sustainable transition and aim to achieve carbon neutrality by 2060, he said.

"We are able to bring together European standards with the complexities of carbon transition on the ground in emerging markets like China. We established our ESG Centre of Excellence in Singapore for this very reason — to join international best practices with transition plans and incentives that make sense in an Asian context. We are in active dialogue with many of our clients in China on how they can achieve their transition ambitions," he said.

Deutsche Bank is one of the few foreign banks to be included in the People's Bank of China's carbon emissions reduction support tool program and has been granted funding for its first successful deal.