Deutsche Bank China announced on Thursday that it has received approval from the Shanghai Bureau of the China Banking Regulatory Commission to set up a sub-branch in the Free Trade Zone.

The sub-branch will cater to the needs of corporate and financial institution clients in the area and is expected to offer a wide range of corporate banking services with a focus on cross-border transactions, the bank said in an email statement.

Four foreign banks - Citigroup, HSBC, DBS and Bank of East Asia - have currently established branches in the 28 sq km FTZ, which is expected to be a test field of further financial reform in China.

"Deutsche Bank has grown significantly in China by leveraging rapid advancements in the local financial industry," said Feng Gao, president and chief country officer of Deutsche Bank China.

"The Shanghai FTZ is expected to bring about new opportunities for banks that are well positioned to serve clients' needs in a global context. This plays well to Deutsche Bank China's strengths in providing innovative solutions in an evolving market place."