People walk outside the headquarters of the China Securities Regulatory Commission in Beijing. File photo: VCG

China's securities regulator has cleared US-based Citibank to offer custodian business for securities investment funds, and Singapore-based DBS for a securities business, as China moves to further open its financial sector to overseas investors. 

Citibank recently received approval from the China Securities Regulatory Commission (CSRC) to conduct custodian business for securities investment funds, while DBS received approval to set up a securities business, according to media reports on Tuesday. 

Staff from the PR departments at Citibank and DBS confirmed that they had statements to be released on Wednesday but did not reveal the contents. 

Dong Dengxin, director of the Finance and Securities Institute at Wuhan University of Science and Technology, said that fund custodian services were primarily dominated by domestic banks, but now as the nation keeps widening access for foreign-invested banks, it will benefit players from both China and abroad.

"Opening up is an inevitable trend in the financial services sector," Dong told the Global Times on Tuesday.

"Transnational banks have rich experience in fund operation and mature management skills, and their local operations in China will serve as a model for domestic players, paving the way for the latter to go global someday," Dong noted.

UK-based Standard Chartered China was the first foreign-invested bank to obtain custodian status in China in 2018, following a slew of measures the nation announced in April 2018 to open up the financial sector - including an easing of restrictions on ownership and business operations by overseas players.

China has been steadily opening up its financial sectors to foreign industry players.

Last week, the CSRC gave the green light to Japan-based Daiwa Securities to establish a majority-owned joint venture in China, making Daiwa the seventh overseas securities firm to have a majority-owned joint venture in the Chinese mainland, including J.P. Morgan Securities and Nomura.

The Chinese financial industry's opening-up has been on a fast track in recent years, which showcases the confidence and need to use international resources to strengthen the industry, according to Dong.

Liu Guoqiang, deputy head of the People's Bank of China, said during a recent meeting that  the government will continue to open up the financial sector actively and systematically.