ANZ gets approval for Shanghai FTZ sub-branch

Australia and New Zealand (ANZ) Banking Group Ltd said on Sunday it had approval from Chinese authorities to set up a sub-branch in the new Shanghai Free Trade Zone, following several other major international lenders into the pilot project.

ANZ, the most Asia-focused of Australia's four largest lenders, will offer a range of banking products to companies in the free trade zone, in both yuan and foreign currencies.

The bank plans to open the sub-branch in 2014.

The free trade zone, which covers an area of nearly 29 square kilometers on the eastern outskirts of Shanghai, was launched in late September.

"We look forward to contributing to its success by supporting cross border trade and investment flows, as well as promoting the development of RMB (renminbi) financial markets," Charles Li, Chief Executive of ANZ China, said in a statement.

Australia's third-largest bank by market value follows Deutsche Bank, Citibank, DBS, Hang Seng Bank, HSBC and Bank of East Asia in receiving approval to start operations in the zone.

Deutsche Bank (China) said on November 7 its sub-branch in the zone 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, but did not specify when it will open.

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 testing ground for reforms, including a convertible yuan and liberalized interest rates.

ANZ has stood apart from its Australian rivals by seeking to position itself as a pan-Asian player.

It has been in China since 1986 and was locally incorporated in 2010. It has five branches and three sub-branches across five cities - Beijing, Shanghai, Guangzhou, Chongqing and Hangzhou.