HSBC China has received regulatory approval to distribute domestic mutual funds to retail investors in Mainland China.

There is no set date on the launch of the new products, but HSBC will be among the first batch of foreign banks to do so. Initially, the company will offer domestic fund products managed by HSBC Jintrust Fund Management Company, its joint venture with Shanxi Trust and Investment.

"By adding domestic funds to HSBC's range of wealth management solutions, we will be better positioned to provide comprehensive investment tools that help customers establish well diversified portfolios in both domestic and overseas markets," commented Richard Li, head of retail banking and wealth management at HSBC China.

The company currently has the largest branch network among all the foreign banks in the country, with retail banking and wealth management services across 44 cities. China's mutual fund industry has continued to grow through the years, now recording a total of RMB3.98 trillion ($649 billion) in assets under management as of May 2013.