HSBC and Bank of East Asia received regulatory approval to open a sub-branch in Shanghai’s pilot free trade zone, joining Citigroup and DBS Bank with a presence in the zone.
HSBC China said it has been approved to set up an outlet in the FTZ in an e-mailed statement over the weekend. The British-based lender is the biggest foreign bank on China’s mainland by assets and branch network.
Helen Wong, president and chief executive officer at HSBC China, said its new FTZ outlet, set to open early next year, will actively participate in banking innovation projects in the zone. The outlet will initially focus on global banking services and the range of services will be extended according to future policy specifics.
The Chinese unit of BEA, Hong Kong’s biggest local lender, said in a separate statement that financial regulators have given it the green light to set up a sub-branch in the zone.
Overseas banks are also allowed to form joint venture banks with private capital in the zone.
Citigroup and DBS got the nod for new outlets in the FTZ on September 29, when the zone officially opened, along with eight major Chinese banks.