Bank of Nova Scotia today announced plans to open a full-service branch in Shanghai, the first Canadian bank to operate in China’s financial capital.

The decision to go ahead was made after the bank won approval from the China Banking Regulatory Commission to upgrade its long-standing representative office in Shanghai.

Scotiabank plans to serve China’s booming international market

The branch will be permitted to lend money and take deposits from local and multinational companies. But Scotiabank also plans to make the branch its hub for foreign exchange and treasury services throughout China, with a focus on financing for import and export customers.

“The upgrade of our representative office in Shanghai to full-branch status provides an excellent opportunity to further build our international presence,” said Rick Waugh, Scotiabank’s president and chief executive officer, in a release.

“We are particularly optimistic about the potential for growth in China and are pleased to have the opportunity to bolster our presence in Shanghai.”

Scotiabank claims to have the largest network on the Chinese mainland.

It has branches in Guangzhou and Chongqing, plus representative offices in Beijing and Shanghai. These offices offer a range of commercial and trading services, to local and international customers in both Chinese and foreign currencies.

The new Shanghai branch will allow Scotiabank to expand its services in eastern China, the most rapidly growing region in the country and the home for many of its multinational clients.

Scotiabank has been operating in China for 23 years beginning with a representative office in Beijing. It subsequently opened branches in Guangzhou, serving the southern regions, and Chongqing, serving the northern and western regions.

Scotiabank said it has also bought into Xi’an City Commercial Bank, the leading bank in western China, with 113 offices and 1 million customers.