UPDATE 1-Deutsche's China securities JV wins regulatory nod

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HONG KONG, Jan 6 (Reuters) - Deutsche Bank's (DBKGn.DE) Chinese securities joint venture has won regulatory approval from Beijing, becoming the latest Western institution to gain access to China's restrictive domestic capital markets.

The company said on Tuesday that the China Securities Regulatory Commission had granted its approval to a proposed joint venture with Shanxi Securities Co Ltd, called Zhong De Securities Co Ltd.

Deutsche owns 33.3 percent of the venture, the maximum stake allowed for foreign securities firms in the country. The joint venture will focus on underwriting Chinese shares and debt.

The German financial giant joins UBS (UBSN.VX), Goldman Sachs (GS.N), Morgan Stanley (MS.N) and Credit Suisse (CSGN.VX) among western investment banks with a mainland Chinese joint venture.

Foreign banks are eager for a share of the business advising and underwriting domestic deals in China, but their progress in winning access to the heavily regulated market has been slow, and they are restricted to holding minority stakes in local joint ventures.

Late last year, Australia's Macquarie Group Ltd (MQG.AX) entered into a non-binding agreement to explore a mainland Chinese securities venture with Hengtai Securities. (Reporting by Tony Munroe; Editing by Jacqueline Wong)