China's Bank of Communications (Bocom) has been granted approval to become the first commercial bank on the Chinese mainland to invest in a trust company, which is based in central Hubei Province.

    The China Banking Regulatory Commission will allow Bocom to pay 1.02 billion yuan (132 million U.S. dollars) for an 85 percent stake in a new company - Bank of Communications International Trust & Investment Co.

    Hubei International Trust & Investment Co. will pay 180 million yuan for a 15 percent stake in the new firm. The total assets of Hubei International are worth more than 600 million yuan.

    China has begun a series of financial reforms which include allowing banks to conduct business outside the banking sector. The establishment of fund management and financial leasing companies have pushed forward the reforms.

    Bocom was listed in Hong Kong in June 2005, becoming the first major commercial bank from the Chinese mainland to be listed overseas. The bank was listed in the Shanghai Stock Exchange in May this year.(Xinhua)