HSBC and Bank of East Asia have received the go signal from Chinese regulatory authorities to set up a sub-branch in the Shanghai Free Trade Zone.

HSBC and Bank of East Asia have received the go signal from Chinese regulatory authorities to set up a sub-branch in the Shanghai Free Trade Zone.

In separate statements, the banks said they will be opening in the FTZ "soon," with HSBC saying it will launch early next year and BEA not specifying when it is set to launch. They join competitor such as Citigroup, DBS Bank and Bank of China, which have also recently announced that they are launching in the zone. 

The FTZ was inaugurated in Shanghai in September 2013 and was created to set a hub for important financial decisions from the world's fastest growing economy. The key issues to be addressed during the zone's pilot phase include the easier convertibility of the Renminbi and overseas trade.