China Citic Bank is teaming up with Spain's Banco Bilbao Vizcaya Argentaria to establish an independent banking firm, in response to the growing demand for private banking services in China.

In a filing to the Hong Kong Stock Exchange, the two parties said that the planned unit will have initial capital amounting to RMB400 million. The Shanghai-based lender will account for RMB200 million, while BBVA will offer foreign currency capital equivalent to around RMB200 million, including financial assitance to the joint venture.

Terms of the deal were not disclosed, but it was noted that the new entity will be operating as an internal part of China Citic. The deal remains subject to regulatory approval.