DBS eyes growth in China as it enters FTZ

[SINGAPORE] Clinching a front-row seat in China's drive to reform its economy will significantly boost DBS Bank's business in the world's second-largest economy, bankers said yesterday, as the Singapore bank enters the newly established China (Shanghai) Pilot Free Trade Zone (FTZ).

DBS and Citibank were two foreign banks, along with eight domestic ones, to get approval on Sunday from the China Banking Regulatory Commission Shanghai Bureau to set up in the new FTZ.

The zone, which covers 29 square kilometres, "started operating" on Sunday, Xinhua news agency said, adding that it was "a test bed for the leadership's drive for deepening market-oriented reforms and boosting economic vigour". Restrictions on foreign investment will be eased inside the area, which will also loosen controls on 18 service sectors ranging from finance and shipping to cultural services.