The head of one of China's largest state-owned banks is to join the board of Barclays within a matter of weeks, people close to the UK bank said last night.
Chen Yuan's recruitment to the board forms part of a deal struck between Barclays and CDB last July
Chen Yuan, governor of China Development Bank (CDB), which helps fund overseas expansion projects by the country's major companies, could become a non-executive director of Barclays as soon as this week.
The timing of Chen's appointment to the Barclays' board is contingent upon final approval from a number of China's political bodies, according to people close to the situation.
Chen's recruitment to the board forms part of a deal struck between Barclays and CDB last July, which saw the Chinese institution invest £1.5bn for a 3.1 per cent stake.
The transaction has so far cost CDB a paper loss of hundreds of millions of pounds following the slump in Barclays' share price.
More from the banking and financial services sector While the Government has broadly welcomed greater foreign investment in British companies, Chen's appointment to the board of one of Britain's most important financial institutions will raise questions about the growing influence of China's state-backed entities.
advertisementChen also occupies a role in China's State Council and is the son of Chairman Mao's chief economic planner.
CDB, which was recruited to help Barclays finance its ultimately unsuccessful offer for Dutch bank ABN Amro last year, is itself likely to seek a stock market listing within the next two years.
CDBas been advised on its investment in Barclays byBlackstone, the private equity group which also has a prominent Chinese investor.Barclays declined to comment on Chen's appointment.
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