BEIJING, Dec. 13 (Xinhua) -- The Hongkong and Shanghai Banking Corporation Limited (HSBC), Standard Chartered Bank (SCB) and Citigroup have been approved to provide accounts for Chinese citizens for amounts of at least one million yuan (127,550 U.S. dollars).

China's new regulations on the administration of foreign-funded banks allow foreign banks to conduct Renminbi business for Chinese citizens in line with its WTO commitments.

The government is also encouraging foreign banks to incorporate in China to minimize risks for Chinese customers.

Eight foreign banks, including HSBC, SCB and Citigroup, had filed applications for local incorporation and will establish subsidiaries in Shanghai.

HSBC said it will launch accounts in nine cities.

Richard Yorke, chief executive officer China of HSBC, said, "We are delighted to be one of the first to receive confirmation from the China Banking Regulatory Commission (CRBC) to provide the new RMB service to local residents ahead of our local incorporation."

SCB said it hoped to provide more diverse financial products and expand the service range to meet needs of different customer groups.