Deutsche Bank, Huaxia to issue China card in May

Shanghai, Feb 7: Huaxia Bank and Deutsche Bank aim to issue a co-branded credit card in China in May, sources said, a move that will give Germany's top lender quick access to the country's fast-growing retail banking business.

Banking sources close to Huaxia told Reuters on Wednesday that Deutsche Bank was assisting Huaxia to set up a joint credit card centre in Beijing, and preparations for launching the card had been almost been completed.

Huaxia is applying to the Chinese banking regulator for the card issue, the sources said.

If approved, the co-branded card would become the first joint product after Deutsche Bank bought a nearly 10 percent stake in the medium-sized Chinese lender in late 2005.

It would make Deutsche Bank the fourth foreign lender to issue a card in partnership with Chinese banks.

Foreign financial firms are not allowed to issue any type of bank cards in China independently. Citigroup Inc., HSBC Holdings Plc and Hong Kong's Hang Seng Bank have already issued their co-branded cards in China.

Deutsche Bank declined comment, while Huaxia Bank was not immediately available for comment.

Reuters