The bank's application has been approved by the China Banking Regulatory Commission (CBRC), the industry regulator, said a source with the bank's representative office in Tianjin.

The source said they were making preparations to open the branch.

Bank president Hiroshi Saito said in an earlier visit to Tianjin that the branch would provide financial support to Japanese firms, especially auto makers and chemical plants, to help them set up business operations in the area.

The source said the branch will be located in the Binhai New Area. The Chinese government is endeavoring to turn the area into China's third economic powerhouse after Shenzhen and Shanghai's Pudong.

Analysts say the bank, along with Standard Chartered Bank and HSBC, understands that the Binhai New Area is a priority area for the Chinese government.

The Tokyo-based bank now has five branches and five representative offices in ten mainland Chinese cities including Shanghai, Beijing, Shenzhen, Guangzhou and Nanjing.

Along with eight other foreign banks including HSBC and Citibank, Mizuho has been approved by the CBRC for local incorporation.

Under the new regulations on foreign banks that took effect on Dec. 11, foreign banks can conduct Renminbi business with Chinese citizens with few limitations provided they incorporate locally.

(For more biz stories, please visit Industry Updates)