China will grant foreign financial institutions the same treatment as domestic companies when introducing new types of financial services currently unavailable in the country, within select free-trade zones, Reuters reports, citing the Chinese central bank.

The country has also pledged to streamline inbound and outbound fund transfers associated with foreign investments into these zones, including major hubs like Beijing and Shanghai, according to new guidelines released by five government agencies.

For instance, Russia’s VTB Bank operates a branch in Shanghai’s Pilot Free-Trade Zone. Currently, VTB is the only Russian bank with a banking license permitting operations in China. On June 12, 2024, the United States imposed sanctions against this Chinese branch of VTB.

Russia’s largest lender, Sberbank, also sought to open a branch in China by the end of 2023, but the process began after the bank fell under Western blocking sanctions. There has been no recent update regarding the opening of its Chinese subsidiary. Other Russian banks, including Alfa Bank, Gazprombank, and Tinkoff Bank, have also announced plans to establish operations in China during 2024.