Deutsche Bank China venture gets business license

SHANGHAI, July 8 (Reuters) - Deutsche Bank (DBKGn.DE) on Wednesday said its Chinese securities venture had received a business license from regulators allowing Germany's largest bank to underwrite shares and bonds in the world's third-biggest economy.

Charles Wang, a former managing director of Deutsche Bank, has been appointed chief executive officer of the Beijing-based venture, Zhong De Securities, which was set up in January in partnership with Shanxi Securities Co, according to a statement.

"The business license has come at a critical time for China's financial markets, over a period in which Deutsche Bank has continued to invest and commit capital," Lee Zhang, Group Chairman of Deutsche Bank China, said in the statement.

China last month resumed initial public offerings after a nine-month hiatus as the local stock market had rebounded by more than 60 percent this year from a 65 percent slump in 2008.

China also plans to launch a Nasdaq-style second board, expand its corporate bond market and establish Shanghai as a global financial centre by 2020.

The business license, granted by the China Securities Regulatory Commission, will initially allow Deutsche Bank's venture to underwrite and sponsor yuan-denominated A shares and foreign investment shares, as well government and corporate bonds.

The venture will compete for businesses in China with companies invested by other western banks, including UBS (UBSN.VX), Goldman Sachs (GS.N), Morgan Stanley (MS.N) and Credit Suisse (CSGN.VX).

More foreign investors, including Macquarie Group Ltd (MQG.AX), Australia's biggest investment bank, are seeking to set up ventures in China, the world's fastest-growing major economy.

Zhong De is one-third owned by Deutsche Bank, the maximum allowed for a foreign investor, and 66.7 percent by Shanxi Securities. (US$1=6.832 Yuan)