Australia and New Zealand Banking Group plans to open its local incorporation in Shanghai this year with registered capital of 2.7 billion yuan (US$395 million).

The Melbourne-based bank is to open about 20 outlets by 2012 on the Chinese mainland after it is locally incorporated, said Michael Smith, chief executive officer of ANZ, yesterday in Shanghai.

Australia and New Zealand Bank (China) Co is targeting the "business class," Smith said, not the mass market "economy class." It defines those clients as having assets ranging from US$100,000 to US$1 million.

The bank may offer private banking services for high net worth millionaires in the future, said Alex Thursby, Asia Pacific, Europe and America chief executive at ANZ.

The bank is also considering adding to its rural bank footprints in western or southwestern China, Thursby said.

ANZ has branches in Shanghai, Beijing and Guangzhou, a sub-branch in Shanghai and a rural bank in Liangping in Chongqing. It has applied to set up a branch in Chongqing.

The bank has also invested in Shanghai Rural Commercial Bank and the Bank of Tianjin.

Smith said the bank is looking for opportunities for acquisition throughout Asia, with China as one priority.