HONG KONG BNP Paribas has received approval from the Chinese securities watchdog to set up a wholly-owned securities brokerage arm in China, the latest foreign financial firm making inroads into the world's second largest economy.

China Securities Regulatory Commission (CSRC) granted its permission to the Paris-headquartered financial group on Friday, official regulatory record showed.

The green light came about eight months after the French firm applied with the CSRC in September last year.

The unit, fully-owned by BNP Paribas, with 1.1 billion yuan (US$152 million) in registered capital, will be established in Shanghai, according to the record.

The platform is permitted to conduct securities brokerage, proprietary trading, securities investment consulting and securities asset management.

  - Reuters