Global investment banks are continuing with plans to expand in Shanghai despite China’s financial capital being under strict Covid-related lockdowns, reports the Financial Times. The lockdown of Shanghai, running into its fourth week in some districts and part of Beijing’s policy of eliminating Covid-19 cases, is one of the biggest tests yet of western banks’ resolve to build businesses in a country in which domestic lenders have long dominated.
Goldman Sachs and JPMorgan Chase are among banks to have moved staff from Hong Kong to Shanghai in recent weeks. They are also part of a group, including Morgan Stanley, Citigroup, UBS, Credit Suisse and Deutsche Bank, to have earmarked Shanghai as a target for major investment in coming years.
“We’re trying to build a 50-year business in China,” said a person familiar with Goldman’s plans. “A disruption over several months isn’t enough to shift the strategic thinking.”