Deutsche Bank China has commenced operations in China as a wholly foreign-funded subsidiary bank, solely-owned by Deutsche Bank, following approval from the China Banking Regulatory Commission. The existing branches and sub-branches of Deutsche Bank in Beijing, Shanghai and Guangzhou will be converted into corresponding branches and sub-branches of Deutsche Bank China, which will be headquartered in Beijing. A wholesale foreign exchange branch is being retained in Shanghai. Under its licence, the German bank said it was now allowed to conduct a broader range of businesses in China, including foreign exchange, yuan deposits and lending, trading of bonds and foreign currency-denominated securities other than stocks. Colin Grassie, chief executive of Deutsche Bank Asia Pacific, said: "Locally incorporating in China is a major milestone in Deutsche Bank's development. Our aim is to directly participate in the development of China's financial services sector as broadly as possible and local incorporation will help us achieve this." A number of major foreign banks operating in China, including Citigroup, HSBC, Standard Chartered and Hong Kong's Bank of East Asia, have elected to incorporate locally in order to avoid a range of restrictions on foreign banks.