The first batch of applications by overseas banks for a fund distribution license has been received by the China Securities Regulatory Commission, according to a notice the regulator released Monday.

The applicants include the subsidiaries of five overseas lenders - Bank of East Asia, Standard Chartered Bank, United Overseas Bank, Citigroup and Hang Seng Bank, the notice said. They hope to start the fund distribution business this year.

Only Chinese lenders are allowed to sell units in mutual funds at their branches, which is a booming business of 645 billion yuan (US$102.6 billion) in 2012, more than doubled from 255.5 bullion yuan in 2011, according to data of the Hong Kong lender BEA.

Analysts said over the long term the overseas banks could challenge the dominant position of Chinese lenders by bringing new customer groups and different management practices.

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