Chinese gaming giant joins London’s tech hub
A leading Chinese mobile gaming company has announced plans to open its European hub in London's technology district, while the U.K. government continues wooing businesses on a trade mission to the world's second largest economy.
Rekoo will become the first company from mainland China to settle in Tech City, Britain's answer to Silicon Valley in East London, and home to over 1,500 companies including Mind Candy – the group behind the popular Moshi Monsters.
The Beijing-based company will hire 10 employees here in the U.K. to join its staff of 25 workers based in London over the next three years as it looks to market its games to European consumers.
London's Mayor and the U.K.'s finance minister have welcomed Rekoo as the pair continue their trade mission to China in an attempt to drum up investment for Britain and boost bilateral trade to $100 billion by 2015.
(Read more: Roundabout way: London's Tech City sets sights high)
"As a leading light in China's tech scene, Rekoo's decision is another huge boost for the capital's digital industries," the Mayor of London Boris Johnson said.
Finance minister George Osborne said he was "delighted" by Rekoo's entrance to the U.K.
Rekoo has 20 million active daily PC gamers and 10 million daily smart phone gamers and looks to expand in Europe.
"Companies in the UK produce very high-quality games, and being in London means we can attract world-class talent and find new business opportunities with UK and European developers," Lisa Pan, vice-president of Rekoo said.
Wooing Chinese investors
Chinese investment in the U.K. has been on the up. In 2012, Chinese investment in Britain rose to $4 billion up 80 percent from 2011, while London is the number one capital city for Chinese investment outside Asia over the last decade.
(Read more: UK's Osborne woos China with shared investment)
The move by Rekoo follows a wave of Chinese investment in the U.K. over the past week. The Beijing Construction Engineering Group said on Sunday it had entered a joint venture to build a business district at Manchester airport, while a Chinese billionare announced plans to spend £500 million on rebuilding London's Crystal Palace.
Osborne announced a series of measures to attract Chinese investment in Britain including easing visa rules and allowing Chinese banks to set up wholesale banking branches in London to expand their operations to corporate and institutaional clients.
But the Chancellor has faced backlash from U.S. banks that accused him of interfering in the regulation put in place following the collapse of global banks and the onset of the financial crisis.
— CNBC's Arjun Kharpal: Follow him on Twitter @ArjunKharpal