BEIJING, Aug. 7 -- The Industrial and Commercial Bank of China has received approval from the Federal Reserve to open its first branch in the United States, a move that helps support its international development strategy, the bank said yesterday.

The Beijing-based bank is now preparing for the launch of the New York branch, which is expected to start operation in the near future, the bank said yesterday.

The New York facility will engage in wholesale deposits, lending, trade finance and other banking services.

"The New York branch will help speed ICBC's cross-border strategy and increase the influence and competitiveness of Chinese banks on the global stage," ICBC said.

It has been more than a year since ICBC filed its request to open a U.S. branch. ICBC said the increasing performance by China's banking industry and better supervision helped it gain approval to operate in the United States - the latest breakthrough by a Chinese bank.

China Merchants Bank last month became the first Chinese bank to receive a banking license in the United States since the adoption of the Foreign Bank Supervision Enhancement Act of 1991.

The Shenzhen-based bank received a license to open a New York branch, which will start operation this year. The Bank of China and the Bank of Communications also have branches in the United States.

China Construction Bank has also applied to open branches in the United States and is still awaiting regulatory approval.

ICBC set up a New York representative office in 1997. Its reach outside of China has expanded to Jakarta, London, Luxembourg and Moscow.

ICBC shares ended trading at 5.13 yuan (75 U.S. cents) yesterday in Shanghai, up 1.58 percent, while the benchmark Shanghai Composite Index rose 1.06 percent to 2,719.37