THE Chinese arms of seven overseas banks have received the green light from the China Securities Regulatory Commission to sell mutual funds to domestic retail investors.

The subsidiaries of HSBC, Citigroup, Bank of East Asia, DBS Bank, United Overseas Bank, Hang Seng Bank and Nanyang Commercial Bank all confirmed yesterday that they've received regulatory approval to sell mutual funds on China's mainland. They also confirmed the receipt of the distribution license.

HSBC said it will launch the fund products soon and will initially offer products managed by HSBC Jintrust Fund Management Co, its local joint venture, before partnering other fund houses later this year.

"This product offering not only supplements the existing range of wealth management products offered by foreign banks, but also broadens distribution channels for local funds," said Helen Wong, deputy chairman, president and CEO of HSBC China.

Citi China said the license provides its individual, business, and institutional clients access to the A-share market and other capital instruments. The US-based bank said it will partner with Invesco Great Wall Fund Management Co and Manulife Teda Fund Management Co. It is also finalizing details with seven other fund firms.

Standard Chartered Bank and Oversea-Chinese Banking Co have also filed applications for the distribution license, according to a document published by the CSRC on its website.

By the end of last month 81 fund management firms managed assets worth 3.98 trillion yuan (US$642 billion) and there were over 1,317 mutual funds, accounting for 3 trillion yuan, the Asset Management Association of China said.