BNP Paribas is seeking access to the securities investment fund custody business in China as the country continues to open its financial sector to foreign players.

BNP Paribas (China) Ltd, a subsidiary of the French bank, confirmed on Wednesday that its application for a securities investment fund custody license in China has received initial acceptance from the China Securities Regulatory Commission. The license will enable the bank to directly provide custody-related solutions to funds established in China.

Last year, BNP Paribas was granted a Qualified Foreign Institutional Investor custodian and settlement license, enabling it to directly support foreign institutional investors to access China's equities and bond markets.

BNP Paribas is the first foreign bank to apply for a fund custody license in the country in the last two years since Citibank (China) Co Ltd and Deutsche Bank (China) Co Ltd announced that they received such licenses from the CSRC in 2020.

Foreign bank executives said offshore institutions are looking for more business opportunities in China as the nation is accelerating the pace of its financial opening to the outside world.

John Hong, deputy CEO of Standard Chartered Bank (China) Ltd, said: "China remains on track for continuous opening-up of its financial sector on the basis of high-level development. This will keep bringing many growth opportunities for foreign financial institutions. During this process, our business has truly benefited from the achievements of China's further opening-up."

Ginger Cheng, acting chief executive officer of DBS Bank (China) Ltd, said DBS, a Singapore-based multinational banking and financial services corporation, has been participating deeply in the opening-up of China's financial market.

"China's business environment has improved compared with 20 years ago. For instance, we have seen intensified policy strength to promote the opening-up of its banking sector in the last few years," Cheng said.

DBS Securities (China) Ltd, a joint venture in which DBS Group has a controlling 51 percent stake, officially commenced business operations on June 7, 2021.

"Our parent bank has been yearning to set up a majority-owned securities company in China for a long time. The establishment of DBS Securities (China) Ltd is an exact result of the opening-up of the country's financial market," she added.

The world's second-largest economy has stepped up efforts to promote the opening-up of its financial sector. Liang Tao, vice-chairman of the China Banking and Insurance Regulatory Commission, said the CBIRC has announced 34 new measures since 2018 to promote further opening-up of China's banking and insurance sectors.

The regulator approved the establishment of more than 120 foreign-invested banks and insurance companies between 2018 and 2021.In addition, a group of international institutions with a leading position in the areas of wealth management, commercial insurance or credit ratings entered the China market via a wholly foreign-owned enterprise or a foreign-invested enterprise in which the foreign company had a controlling share or equity participation, said Liang at the Boao Forum for Asia Annual Conference 2022 on April 21.

Looking ahead, he said the CBIRC will further promote the opening-up of China's banking and insurance sectors, maintain a system of pre-entry national treatment plus a negative list management for foreign investment, encourage an increasing number of foreign institutions to enter the China market, and strengthen international cooperation in financial regulation.

While China is accelerating the opening-up of its financial sector, its asset management industry has seen rapid growth in recent years. The industry expanded by nearly 11 percent year-on-year in 2021, said a report jointly issued by China Everbright Bank and Boston Consulting Group on April 24.

By the end of the first quarter of this year, assets under management in China hit 66.24 trillion yuan ($9.81 trillion), according to the Asset Management Association of China.