The Industrial and Commercial Bank of China (ICBC) has established its first representative office in South Africa.

The Cape Town office will focus upon deepening the co-operation between the Chinese banking giant and South African firm Standard Bank Group.

ICBC Chairman and Executive Director Jiang Jianqing said that the long-term growth potential and strategic positioning of Africa had always been a focus of the bank.

Three years ago ICBC became the single largest shareholder in Standard Bank Group when it bought a 20% stake in the firm.

Jiang went on to describe South Africa as a model of a fast growing economy in the continent, adding that the firm’s decision to open a representative office reflected the strong belief ICBC has in Africa.

In September the two financial institutions signed a pair of agreements to deepen their business co-operation, namely the formulation of a framework for trade and settlement co-operation, and a memorandum of understanding regarding settlement netting of precious metals transactions.