BNY Mellon has been granted a licence to conduct local currency business in Shanghai by the China Banking Regulatory Commission.

Starting April 2011, the firm's Shanghai branch will start offering renminbi foreign exchange and money market services. The new trading floor will be headed by Bing Cheng as managing director and head of global markets in Shanghai. Cheng, who steps in from DBS Shanghai, where he served as head of interest rate trading, treasury and markets, will report to Hong Kong-based head of Asia-Pacific global markets, Marek Unger.

"The debate about the growing internationalisation of the Chinese currency has certainly stepped up over the recent months. Building a strong business in China is intrinsic to our future growth in Asia, and receiving RMB licence approval is a major step forward," Unger commented in a statement.

The RMB licence is the latest move in BNY Mellon's continuing expansion strategy for its China operations and is expected to bolster its corporate trust, asset servicing and treasury services businesses in the country. The authorities had granted the bank the the right to set up a branch in Beijing in June 2010 and in July was given the go-ahead to establish a fund management joint venture with Western Securities in China.