In a landmark deal, a Chinese wealth manager has opened an office in Hong Kong, reversing the trend which for many years has seen foreign private banks try to gain a foothold in Mainland China.

In a landmark deal, a Chinese wealth manager has opened an office in Hong Kong, reversing the trend which for many years has seen foreign private banks try to gain a foothold in Mainland China. 

Noah China, the Mainland China-based financial planner, has expanded its coverage of the Asian market with the opening of a subsidiary in Hong Kong, potentially paving the way for a more open market between the special administrative region and the communist country. 

Noah Holdings (Hong Kong) will target mainly high net worth clients in the region through a license issued by the Securities and Futures Commission, the local regulatory body. It is the first Mainland China independent financial institution with a Hong Kong unit and the only such firm listed on the New York Stock Exchange, the company said in a statement.

Through the new branch, Noah aims to build a gateway between the Mainland's financial markets and the rest of the global financial community, most notably at a time many international firms are also setting up their own subsidiaries in Hong Kong.

Noah China was established in 2005 as an advisory service for high net worth individuals and has since grown to have 53 branches in Mainland cities. It now has over 500 qualified financial advisors on its team.

Lured by the promise of the world's fastest growing millionaire population, foreign banks and wealth managers have been eager to tap the emerging economy's growing wealth with an office or subsidiary. But the country is highly restrictive on regulations allowing foreigners in, and few international banks have made much headway. According to data from Pricewaterhouse Coopers, only around 2-5 per cent of Chinese assets are held in foreign banks. 

Some, like Citi, Credit Suisse, HSBC and the Royal Bank of Scotland have established joint ventures with local partners, but few have established a presence in the country under their own steam. Earlier this month US lender Citi made headlines when it became the first foreign firm to gain approval to distribute its own credit cards in China.