SHANGHAI (REUTERS) - The Hong Kong unit of Standard Chartered has applied for a brokerage licence in mainland China, the state-backed Xinhua News Agency reported on Monday (Oct 12).

The China Securities Regulatory Commission (CSRC), the country's top securities watchdog, had accepted the application from StanChart HK on Oct 10 to set up a securities firm in the mainland, Xinhua reported.

The HK unit of StanChart told Reuters in an email that it was "looking to further develop onshore business through acquiring new licences".

Beijing scrapped foreign ownership caps on securities firms and mutual funds for foreign investors on April 1, part of an interim US-China trade deal signed in January.

The UK-headquartered bank backed a controversial Chinese national security law for Hong Kong and saw its share price tumble last month due to political uncertainties.