Renaissance Capital has revealed that it is planning to open an office in Hong Kong as it seeks to expand its coverage of the fast-growing Asian market.

The Moscow-based emerging markets investment bank is preparing to establish the new office before the end of 2010 with an initial staff of 15. Jeremy Sparrow, the company's managing director, has been installed as chief executive officer for the Hong Kong branch.

"The centre of global capital for emerging market is moving east, and we expect Hong Kong to be the greatest beneficiary of that process. We are also witnessing a major M&A integration between Asia and other emerging markets. For these reasons, we are building an Asian presence," said Stephen Jennings, the chief executive of Renaissance Capital.

According to Sparrow, Russia being the largest commodities producer in Asia fits naturally well with China being the largest commodities consumer. The company also plans to set up a banking presence in Beijing by year-end.

Plans for the Hong Kong office are still awaiting regulatory approval.