DB wins approval for branch in Shanghai FTZ

SHANGHAI?- Deutsche Bank (China) said on Thursday it has received approval from the Chinese regulator to set up a sub-branch in the new Shanghai free trade zone, ahead of an important Communist Party policy meeting this weekend.

Chinese leaders are expected to announce a fresh batch of policies to steer the world's second-largest economy towards more sustainable growth after three decades of breakneck expansion.

Deutsche Bank follows Citibank, DBS , Hang Seng Bank, HSBC and Bank of East Asia in receiving approvals to start operations in the pilot free trade zone.

The sub-branch will serve corporate and financial institution clients in the area and offer a wide range of corporate banking services with a focus on cross-border transactions, the bank said.

"The Shanghai Free Trade Zone is expected to bring about new opportunities for banks that are well positioned to serve clients' needs in a global context," Feng Gao, president of Deutsche Bank China said in a statement. It did not specify when the sub-branch would open.

The Shanghai zone, which covers an area of nearly 29 sq km on the eastern outskirts of the commercial hub, was officially launched in late September.

China's State Council said it would open up its largely sheltered services sector to foreign competition in the zone and use it as a test bed for bold financial reforms, including a convertible yuan and liberalized interest rates.