Turkey plans to open bank in China

GÖKHAN KURTARAN

ISTANBUL – Hürriyet Daily News

Turkey plans to open a bank in China as a result of the developing trade and monetary relations between the two countries, according to a statement by Turkish Deputy Prime Minister and Economy Minister Ali Babacan.

The Bank of China, the Asian county’s third-largest lender by market value, has received a license to open a branch in Istanbul, Babacan said while speaking at the Turkey China business forum held Thursday in Istanbul.

The Turkish Central Bank and the Chinese Central Bank are negotiating to support trade in national currencies, the economy minister added. “We are pleased to see that the head of the branch has been assigned by the bank to operate in Istanbul,” he said.

“We are also trying to open a Turkish bank in China as soon as possible,” Babacan said, noting that the Turkish government hopes to develop a long-term and multidimensional strategic partnership with China.

The Industrial and Commercial Bank of China, or ICBC, has also been looking for opportunities to open branches in Turkey, Ning Zhang, the secretary-general of the standing committee of Shenyang Municipal People’s Congress, told the Hürriyet Daily News earlier. Chinese banks started to plan new branches in Turkey following a November meeting between Turkish Prime Minister Recep Tayyip Erdoğan and Chinese Premier Wen Jiabao in Ankara, agreeing to use local currencies, the Turkish Lira and the yuan, in bilateral trade.

More than 50 Chinese companies looking for investment and trade opportunities in the Turkish market joined Thursday’s event.

Leading energy firms from the two countries agreed to invest nearly $120 million in a solar-energy business in Turkey, the top executive of Turkey’s Akfel Engineering told the Daily News during the forum.

CEEG Solar Science & Technology, the largest solar-cell manufacturing company in China, will directly invest nearly $100 million in a new solar plant in southern Turkey, said Fatih Baltacı of Akfel. He added that his firm will invest nearly $20 million in the project.

The total electricity-generation capacity of the solar plant will be nearly 50 megawatts, according to Baltacı. “Turkey plans to reach a total of 600 MW of energy generated through solar power plants within four years,” Baltacı said, adding that Chinese solar-energy companies, primarily CEEG, are looking for a bigger share of this market.

“I believe that more investment will come to Turkey,” he said.

“The Bank of China may fund the Chinese firm for the solar investment in Turkey,” Baltacı said, noting that the location of the investment has not yet been decided, but the negotiations are continuing between the companies.

More firms eying Turkey

The DAQQ Group, which has 23 subsidiaries and joint venture companies cooperating with Germany’s Siemens and Moeller, the U.S. firm Eaton and the Swiss firm Secheron, is meanwhile eyeing investments in hydropower stations in Turkey, the Daily News has learned.

Huadong Electrical & Mechanical Engineering plans new investments in hydropower stations and renewable energy in Turkey, while Chinese manufacturers of construction equipment, including Jiangsu Jianhua Concrete Pile and Fuzhou Xia, aim to manufacture equipment in the Turkish market. The leading Chinese construction firms Shanghai Euro Sunshine Group and Zhongwei Real Estate are meanwhile among the companies looking for investment opportunities in Turkey’s rapidly growing property market.

via Turkey plans to open bank in China – Hurriyet Daily News and Economic Review.