Standard Chartered Bank (Hong Kong) has received in-principle approval from China Securities Regulatory Commission (CSRC) to establish a securities unit in mainland China.

The move will see the creation of Standard Chartered Securities (China), which will have RMB1.05bn ($155.69m) of capital injection initially.   

The firm will offer underwriting, asset management solutions to asset-driven securities as well as own-account trading and brokerage services.

Based in Beijing, the securities unit will also provide onshore and offshore clients with various solutions associated with Chinese onshore capital markets.

Standard Chartered head of financial markets in Asia John Tan will serve as chairman-designate of Standard Chartered Securities (China), while Grace Geng will be appointed as CEO-designate of the firm.

The latest clearance represents the first of its kind approval granted by CSRC to establish an onshore securities firm, wholly-owned by a foreign entity through greenfield investment after the country removed ownership constraints for foreign financial firms in 2020.

Geng said: “Standard Chartered Securities (China) Limited will have a unique business strategy and focus on fixed income businesses, which are the strengths of Standard Chartered Bank.

“Riding on the Bank’s international network, strong capacity in product innovation and structuring in fixed income area, as well as its full commitment to serving China’s capital markets, the Securities Firm will adopt a differentiated business model.

“We are well-positioned to provide tailored financial solutions to our clients, connecting investors with high-quality onshore and offshore assets.”

Last month, CSRC reportedly granted its approval to Standard Chartered and American banking giant JPMorgan to set up fully-owned JVs in China.