Hang Seng Bank has gained regulatory approval from the China Banking Regulatory Commission to establish a subordinated-branch in Shanghai.
The new sub-branch will target on offering cross-border financial services in the free trade zone and will work along with Hang Seng China to help the development of the free trade zone and other initiatives developed to bolster the financial and economic ties between the Mainland and Hong Kong.
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China has already set up the Shanghai free trade zone at the end of September and assured to acheive capital account liberalisation and interest rate reforms in the pilot zone.
The move follows the regulatory approvals of four other banks including Citigroup, Development Bank of Singapore, HSBC Bank, and Bank of East in Shanghai.
Rose Lee, vice-chairman and chief executive of Hang Seng Bank, said: "The opening of the Shanghai Free Trade Zone is an important milestone in the liberalisation of mainland China’s investment, trade and financial systems, and will bring new opportunities in the financial sector. Hang Seng fully supports its development.
"The groundwork for this new outlet will be completed soon. With a particular emphasis on providing cross-border financial services, the sub-branch will promote development in the Shanghai Free Trade Zone. It will also support our long-term Mainland growth strategy," she added.
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By GlobalDataThe bank records some HK$1.1 trillion ($142 billion) in total assets as at 30 June 2013.
