China Banking Regulatory Commission (CBRC) announced eight measures on Sunday to support banking in the Shanghai pilot free trade zone (FTZ).

According to a CBRC's statement, Chinese-funded banks can establish branches and upgrade outlets in the FTZ, officially launched on Sunday, without the standard yearly limit for newly opened banks.

Foreign-funded banks will be welcomed to set up branches and expand cooperation with Chinese counterparts.

The measures will support finance companies and their subsidiaries in the FTZ, and encourage trusted Shanghai companies to move into the zone.

Banking in the zone will allow qualified private capital to open banks, leasing companies and consumer financing companies, and to participate in stake investment of joint venture banks, the CBRC said.

Cross-border investment and financing will be encouraged while offshore business by Chinese banks will be permitted in the zone.

The measures also simplify access procedures for banks and improve the monitoring and service system.

The CBRC has so far approved 11 institutions for the FTZ, including two foreign banks, Citibank and the Development Bank of Singapore.