Renaissance Capital, an investment bank for emerging markets, has expanded its Asian ambitions by opening its first office in Hong Kong, focused on the metals and mining sector.
Similar to the firm’s operations in London and New York, RenCap’s Hong Kong office will trade securities from Russia, central Asia, eastern Europe, Africa and other emerging markets to institutional investors.
RenCap has been working with Hong Kong’s local regulator the Securities and Futures Commission since May to secure Type 1 and Type 4 licences that will enable it to advise on securities transactions and engage in dealing activities.
The company hopes to have 15 staff in Hong Kong by the end of year comprising sales, trading and investment banking professionals. RenCap also hopes to have a presence in Beijing, China, by the end of 2010.
The Hong Kong unit will be led by Jeremy Sparrow, who has worked for RenCap in London since 2001, in positions such as head of equities and head of international sales.
“Russia is the largest commodities producer in Asia. Asia, and China in particular, is becoming the world’s largest consumer of commodities. Thus it is natural for these two regions to integrate further, including integration through the financial markets. There are large pools of Asian capital, both sovereign and private, looking for commodity driven ideas,” said Sparrow.
“The centre of global capital for emerging markets is moving east, and we expect Hong Kong to be the greatest beneficiary of that process,” added Stephen Jennings, Renaissance Capital CEO. “We are also witnessing a major M&A integration between Asia and other emerging markets. For these reasons we are building out an Asian presence with an office in Hong Kong.”