DBS Bank (China) has received approval to set up a sub-branch in Shanghai's pilot free trade zone (FTZ) by the China Banking Regulatory Commission Shanghai Bureau.

DBS China is one of the first two foreign banks to operate an outlet in the FTZ.

It said that the the sub-branch will focus on servicing corporate clients in the FTZ at its first stage, complementing the bank's established network in Shanghai.

It currently operates nine outlets in Shanghai.

DBS China chief executive Neil Ge said: "The China (Shanghai) Free Trade Zone is an important milestone in China's efforts to build an international financial centre and to reform and reinvigorate its economy for longer term economic viability.

"We will leverage the new outlet to forge strong connections between the FTZ and Asian markets, helping clients to capture new growth opportunities."