Norges Bank opened a representative office in Shanghai yesterday to extend its presence in Asia.

The Shanghai office is the third representative office of the Oslo-based central bank of Norway, following those established in London and New York.

Norges Bank will have about 10 staff, including information technology people and researchers, with the figure expected to grow to 15 next year.

The main purpose for setting up the Shanghai office is to have a location and presence in Asia to enable Norges Bank to place its financial analysts and portfolio managers closer to the Asian markets, the bank said.

It can also help Norges Bank more easily execute its investment decisions in the region.

Svein Gjedrem, governor of Norges Bank, said the bank's investment in Asia will grow in line with Asian countries' rising economies.

The Asian market now accounts for 20 percent of Norges Bank's total investment. No breakdown figure for China was available yesterday.

The bank has already invested in the yuan-backed A share market through borrowed quota and the bank is awaiting its own quota, said Knut N. Kjaer, chief executive officer of Norges Bank Investment Management.

Most of its China investment exposure is still in Hong Kong's stock market.

Norges Bank now manages Norway's sovereign wealth fund, which is about US$350 billion, and the country's foreign exchange reserves, which sit at about US$39 billion.

Norges Bank manages these funds through its arm of Norges Bank Investment Management.

(Shanghai Daily November 7, 2007)